- EUR NZD rate at 1.50 – NZD EUR pairing trades at 0.66
- Euro rise against NZD continues after confidence stats – Forecast-beating improvement inspires investors
- New Zealand Dollar remains soft – Trump pledges US removal from key trade deal
The Euro has retained its earlier gains against the New Zealand Dollar today, although the recent November consumer confidence flash has not triggered as much optimism as might be expected.
Looking ahead, the Euro could rise further in the pairing on Wednesday morning, should the Eurozone-wide PMI flashes for November rise as expected.
The New Zealand Dollar has remained in relatively low demand, which comes as investors continue to digest Donald Trump’s anti-TPP statement.
(Last updated November 22nd, 2016)
On the New Zealand Dollar side, the NZD has been unsettled overall, following signs of a step back in global trading partnerships.
Euro Exchange Rate News: ECB’s Draghi Stands Firm on Ultra-Low Interest Rates
The Euro has advanced by a small degree against the New Zealand Dollar today, though in other pairings, the EUR has been a mixed bet due to recent comments from European Central Bank (ECB) President Mario Draghi.
Speaking yesterday afternoon, Draghi made it clear that having ECB interest rates at 0% was a long-term game plan, in order to try and raise inflation across the single currency bloc.
Overall Eurozone data has been limited today, with Finland showing an unemployment rate rise in October from 7.7% to 8.1%.
New Zealand Dollar Suffers Reduced Demand on US Threat of TPP Withdrawal
The NZD EUR exchange rate has posted at a rate around 0.66 today, which comes in the wake of yet more unexpected remarks from US President-Elect Donald Trump.
While many had speculated that Trump would ‘water down’ his campaign promises after winning the 2016 Election, the future President does at least seem to be sticking with his promise of radically altering existing trade deals.
One of these has been the Trans-Pacific Partnership (TPP), which after years of debates and negotiations, the US finally signed up to in February 2016. Along with other nations, New Zealand is also a TPP signatory. Trump’s latest headline announcement has been that on ‘day one’ (January 20th), he will withdraw the US from the TPP.
Today’s concern has been that with the US out of the deal, New Zealand will have a harder time finding a market for its wares, given what a huge opportunity the US represented to traders. Echoing this sentiment has been Japanese Prime Minister Shinzo Abe, who said;
‘[TPP] would be meaningless without the United States’.
Future EUR NZD Forecast: Further Euro Gains Possible on Incoming Confidence Flash
The Euro may well be able to firm its advantage against the New Zealand Dollar later on today, when the afternoon brings the consumer confidence flash for November.
While this is not predicted to rise into a positive range, the forecast shift from -8 to -7.6 could still boost demand for the Euro given its positive implications.
NZD investors will be left waiting for the most part this week, given that the next major data, covering the October trade balance, isn’t expected until Thursday night.
Current Interbank Exchange Rates
The Euro New Zealand Dollar (EUR NZD) exchange rate was trending in the region of 1.50 and the New Zealand Dollar Euro (NZD EUR) exchange rate was trending in the region of 0.66 today.