EUR/NZD Exchange Rate Slips Despite Positive Eurozone Figures
The New Zealand manufacturing sales for the third quarter were released late on Sunday night, showing a further contraction from -1.2% to -1.6%, which allowed the Euro to push back against the New Zealand Dollar.
This morning saw the European Court of Justice release their ruling which stated that the UK could essentially cancel Brexit without the permission of the other member states, and remain in the European Union.
After this news there was a gradual slip in the pairing, and despite some positive data coming from the Eurozone, such as a higher-than-anticipated figure for October exports for Germany the Euro has been unable to make significant gains on the ‘Kiwi’.
Euro Rallies against New Zealand Dollar Last Week despite Disappointing Eurozone GDP
Friday saw the release of the Eurozone’s Q3 GDP which remained unchanged at 0.2% – falling to 1.6% on a yearly basis despite forecasts it would remain steady.
Eurozone unemployment remained steady in the third quarter, at a rate of 1.3% year-on-year, and 0.2% compared to the second quarter of 2018.
German industrial production increased in October to 1.8% from 0.8% in the previous year, although compared to the previous month, this figure has contracted from 0.2%b to -0.5%.
This generally strong Eurozone data is likely to have aided the Euro in making gains on the New Zealand Dollar at the end of last week’s session.
EUR/NZD Exchange Rate Rises as US-China Tension Reignited
The possibility of renewed tensions between the US and China has weakened the ‘Kiwi’, as the spat continues over the arrest of Chinese comms giant Huawei’s CFO, Meng Wanzhou charged in relation with breaking Iran sanctions.
Meng’s arrest occurred on the same day that US President Donald Trump met Chinese Leader, Xi Jinping over the G20 Summit where they agreed to a 90 day trade truce.
The executive faces accusations that she misled multinational banks about the company’s control of another company operating in Iran.
EUR/NZD Exchange Rate Outlook: Will Disappointing German Economic Sentiment Drag Down the Euro?
Later this evening, November’s electronic card retail sales figures are set to be released for New Zealand, with any increase likely to bolster the ‘Kiwi’ against the single currency.
Tuesday will see the German ZEW survey for economic sentiment for December, which is predicted to contract further, to -25 from -24.1, and the current situation is also expected to contract from 58.2 to 55.6 in December.
If these forecasts are accurate it seems likely the Euro may continue to slide against NZD.
The ANZ monthly inflation gauge for November is due to be released on Tuesday, and this figure could cause some upwards movement in the EUR/NZD exchange rate if it disappoints.