“The Euro is the currency we have been watching the most of late. And at the moment, the Euro is giving the US dollar a bit of a run for its money. Eurozone developments that are a direct result of geopolitical and trade tensions, have seen Germany make some big concessions around their debt levels, and they have approved a huge EUR500billion spending package for infrastructure and defence spending. European equities have also been seen as a bit of a bargain compared with the relatively overpriced US equity market. As a result of all of this, the Euro has been trading higher against the US dollar. And the Euro makes up the biggest portion of the .DXY basket of currencies, meaning that it drags the US Dollar lower as it rises. The NZDEUR cross rate has shifted down a few notches, and we are now trading in the 0.5200-0.5350 range. There is further downside potential here of course, especially if we see the Eurozone cobble themselves together and work more effectively to shore up defence and trade strategies.” Mieneke Perniskie - Trader, Financial Markets.
And there’s more where that came from. For our take on other key Kiwi currency pairs be sure to check out our latest FX Tactical “Wobbly confidence: We hit 55c on tariff turmoil. Now, where will the Kiwi go?”
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