Bank of America Global Research maintains a bearish bias on EUR/NZD, expressing that via staying short in options.
"We recommended selling EURNZD last summer via 6m 1.65 put, with a spot reference of 1.6844 (current spot 1.668). Our rationale for this trade was that monetary policies would likely diverge in the months ahead, putting the long market position at risk. Indeed, the RBNZ has already started hiking rates, while we expect the ECB to announce more QE in the December meeting after the PEPP ends in March. Our positioning indicators suggest that the market is long EURNZD," BofA notes.
"Risks to our short EURNZD trade recommendation are a risk-off market correction and disappointment from ECB policies to back the new inflation target," BofA adds.