The lack of integrated capital markets in the EU is holding back innovation and productivity growth. Despite a renewed push by the European Commission, significant operational barriers to CMU persist. Factors such as incomplete banking union and political disagreements create further headwinds.
Scope for New Zealand Dollar (NZD) to weaken further; oversold conditions suggest 0.5795 is unlikely to come under threat. In the longer run, sharp drop seems excessive; for a continued decline, NZD must first break and hold below 0.5800, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
AUD/JPY continues its losing streak for the third successive session, trading around 94.60 during the Asian hours on Thursday.