FXstreet.com (Barcelona) - Back in January, Mike Jones, currency strategist at Bank of New Zealand, was pretty confident the NZD/EUR could ‘peak’ around 0.6500-0.6600. Six months later, the cross has broken thru this level, and the question now arises. Can the cross go even higher? According to Mike, expectations of further ECB easing combined with a far brigther NZ economic outlook, makes the case to see NZD/EUR stil well supported. However, as Mr. Jones notes, "our new terms of trade adjusted PPP model suggests the long-run equilibrium of the NZD/EUR is around 0.5800, therefore, a push above 0.7000 may be a bridge too far for the cross."
Forex Flash: NZD/EUR, a push thru 0.7 may be a bridge too far - Bank of New Zealand
Thu, Jul 19 2012, 20:42 GMT | FXstreet.com
EUR/NZD Jun 19 at 14:32 GMT
1.6678/87 (-0.50%)
H1.6824 L 1.6680
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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
