Euro Exchange Rate News

Euro New Zealand Dollar Exchange Rate Drops -0.9% ahead of ECB Bulletin

GBP/EUR

The Euro has fallen to a two-week low of 1.5648 against the New Zealand Dollar today.

Although a dominant New Zealand Dollar has pushed the Euro down, the EUR/NZD exchange rate remains at a rate not seen since October 2016.

French President-Elect Emmanuel Macron has continued to limit Euro trading today as a result of concerns about his leadership.

Polls correctly predicted a landslide victory in the Presidential election, but traders remain wary about trusting pro-Macron polling for June’s parliamentary elections.

Elsewhere, European Central Bank (ECB) President Mario Draghi has been speaking to the Dutch parliament, with varied results. Draghi has touted ECB policies as a source of economic recovery, but one Dutch MP has argued that in Holland, Draghi is ‘not a hero’.

The New Zealand Dollar has mainly been supported by US Dollar weakness today, although rising NZ card spending has also helped out.

The US Dollar collapsed after Donald Trump fired FBI Director James Comey, seemingly out of the blue. As politicians scramble to respond to the news, the New Zealand Dollar has steadily appreciated against a shaky USD and unstable Euro.

The ECB will remain a strong source of Euro influence on Thursday.

Proceedings will open with a speech from ECB official Vitor Constancio, followed by the ECB economic bulletin release.

The bulletin could implicitly point to greater Eurozone stability with Macron as French President. Such an assessment could trigger a Euro rally, given the ECB’s influence and the fact of Macron’s five-year term.

The third ECB news will be a late speech from policymaker Peter Praet. Elsewhere, the Euro could appreciate if Greek unemployment falls in February. The previous rate was 23.5%, however, so it will take a significant drop to have a notable impact.

Meanwhile, the New Zealand Dollar could spike when the Reserve Bank of New Zealand (RBNZ) makes its May interest rate decision.

The RBNZ is not expected to change interest rates from 1.75%, but may still trigger a NZD rally with any optimistic remarks. In particular, if RBNZ Governor Graeme Wheeler hints at an incoming rate hike or mentions better economic conditions, the New Zealand Dollar could appreciate.

The last major NZ data will be Thursday’s Business NZ PMI for April. This previously showed healthy growth at 57.8 points, so another increase in business activity could be enough to encourage further NZD trading.

Current Interbank EUR NZD Exchange Rates

At the time of writing, the Euro to New Zealand Dollar (EUR NZD) exchange rate was trading down at 1.5683 and the New Zealand Dollar to Euro (NZD EUR) exchange rate was trading up at 0.6375.

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