The Euro to New Zealand Dollar (EUR/NZD) exchange rate has declined by around -0.25% since markets opened on Wednesday. This is thanks to healthy domestic data counteracting concerns as traders await the Reserve Bank of New Zealand’s rate decision on Wednesday evening. The Euro, meanwhile, is generally unmoved against most of its major peers as a result of an absence of local data.
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.6038.
Although European data was reasonably positive on Tuesday, the common currency was unable to maintain any significant gains. Sentiment towards the European Central Bank has become increasingly negative since the radical stimulus measures employed a few months ago.
So far this week a complete absence of economic data pertaining to New Zealand has seen the ‘Kiwi’ (NZD) struggle to appreciate. However, improved trader risk sentiment has afforded the New Zealand Dollar the chance to advance slowly, thanks to its high-yield qualities. Additionally, an increase in Chinese Industrial Profits aided a ‘Kiwi’ uptick.
The Euro to New Zealand Dollar exchange rate has dropped to a low today of 1.6000.
On Wednesday, the single currency has avoided any significant volatility as a result of the absence of domestic data. However, depreciation is likely to occur as traders digest the news that Deutsche Bank AG, Germany’s biggest lender, showed a third quarter loss after paying 894 million Euros to pay for past misdealing.
‘These legal costs hurt the bottom line, but they can’t last forever and you’ve got to hope the bank can deal with most of its issues by year-end,’ Michael Seufert, an analyst at Norddeutsche Landesbank who recommends investors buy the shares, said by phone from Hanover yesterday.
The New Zealand Dollar, meanwhile, has appreciated against the majority of its most traded currency competitors. This is the result of a vastly improved domestic Business Confidence index, which advanced from 13.4 to 26.5. In addition, the Activity Outlook ticked higher from 37 to 37.8.
Euro to New Zealand Dollar Exchange Rate Forecast to Firm
Although domestic data has supported a ‘Kiwi’ appreciation, it is likely that it will steadily decline ahead of Wednesday evening’s RBNZ rate decision. The common currency, however, has the potential to appreciate a little from a static US Dollar as markets prepare for the Federal Reserve interest rate decision.
With that being said, it is undeniable that negative sentiment towards the Euro and the ECB is rapidly growing. Therefore, a single currency declination wouldn’t be altogether surprising.
The Euro to New Zealand Dollar exchange rate has reached a high today of 1.6090.
UPDATE
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.6121.
Despite the fact that the Reserve Bank of New Zealand was relatively dovish on their monetary policy outlook, the EUR/NZD exchange rate has dropped by around -0.68% since markets opened on Thursday.
This shows that traders have a lot less confidence in the Federal Reserve, even after they ended their quantitative easing policy. In continuing to use language such as ‘considerable time’ when describing the timing of a rate hike, investors have lost confidence in the institution.
Fears that the US economic growth will slow considerably have also aided the New Zealand Dollar.
German data has printed particularly positively on Thursday which is likely to initiate a Euro surge. Unemployment Change was significantly better-than-expectations, having shown -22,000 less unemployed in October despite predictions of 4,000 newly unemployed.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.7941,
New Zealand Dollar,,Euro,0.6234,
New Zealand Dollar,,Pound,0.4928,
New Zealand Dollar,,Australian Dollar,0.8945,
US Dollar,,New Zealand Dollar,1.2590,
Euro,,New Zealand Dollar,1.6040,
Pound Sterling,,New Zealand Dollar, 2.0291,
Australian Dollar,,New Zealand Dollar,1.1179,
[/table]
