The Euro to New Zealand Dollar (EUR/NZD) exchange rate has shifted significantly from yesterday, where the news of Yanis Varoufakis’ ‘Drachma Plan’ sent the Euro into a sharp decline against its rivals.
Euro (EUR) Gains over Commodity Currencies (AUD, NZD), Falls against ‘Greenback’ (USD)
The Euro (EUR) has seen minor gains today against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD) of over 0.2%. This could indicate a return to order for the common currency, as these figures are a reversal of yesterday’s -0.5% loss against both commodity currencies. These gains may be caused by a dip in confidence over the content of Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler’s impending speech, and a more uncertain reaction to the efforts of the Chinese government to stabilise the Chinese stock market.
Elsewhere, the Euro to US Dollar (EUR/USD) exchange rate has fallen by -0.3%, a possible sign that tonight’s Federal Open Market Committee (FOMC) meeting will prove favourable to the US Dollar’s (USD) future interest rate.
Euro to New Zealand Dollar (EUR/NZD) Exchange Rate Plummets Following Greek Contingency Revelation
The Euro (EUR) has completely reversed the major gains that it made yesterday, following the revelation that former Greek Finance Minister Yanis Varoufakis was planning a ‘parallel payment system’ to return Greece to the Drachma, in the event that the country was in danger of losing the Euro.
The damage caused at this crucial stage in the bailout negotiations is clear; the Euro has fallen by over -0.3% against the Canadian Dollar (EUR/CAD) and the South African Rand (EUR/ZAR), and by more than -0.5% against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD).
The Euro (EUR) has gained strongly against most major currencies today, but the Euro to New Zealand Dollar (EUR/NZD) exchange rate has climbed less than pairings like EUR/GBP and EUR/USD.
Euro to New Zealand Dollar (EUR/NZD) Exchange Rate News: Euro soars before Greece Talks, RBNZ Speech Bolsters ‘Kiwi’
The Euro (EUR) has risen across the board today, showing gains of over 1.1% against the Canadian Dollar (EUR/CAD), the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR). The Euro has also seen more than a 0.8% increase against the Pound Sterling (EUR/GBP), the Australian Dollar (EUR/AUD) and the US Dollar (EUR/USD). The gains come as the European ‘Troika’ is due to meet in the next few days and discuss a further bailout for Greece, which has strengthened sentiment towards a stable Eurozone considerably.
The only significant losses for the Euro today have been against the Polish Zloty (EUR/PLN), which saw a -0.5% loss after news came that Poland may be the country of choice for Jaguar Land Rover (JLR) to set up a huge new manufacturing plant.
While the Euro also gained against the New Zealand Dollar (EUR/NZD) by 0.5%, this gain was slighter than against other currencies. This is thought to be due to the Reserve Bank of New Zealand’s (RBNZ) Governor Graeme Wheeler’s scheduled speech on the country’s economy on Wednesday.
‘Kiwi’ (NZD) also Gains against Competitors (GBP, AUD, USD) ahead of Wheeler’s Economy Talk
Although the New Zealand Dollar (NZD) lost against the Euro (NZD/EUR) today by -0.3%, it has gained strongly elsewhere, recording an increase of over 0.7% against the Canadian Dollar (NZD/CAD) and the Pound Sterling (NZD/GBP), as well as rising by over 0.9% against the Chinese Yuan (NZD/CNY) and the US Dollar (NZD/USD).
Graeme Wheeler’s speech will be decisive for the New Zealand Dollar as the central banker may indicate whether further interest rate adjustments are on the horizon. If Wheeler implies that the bank is finished with its easing cycle for now, the ‘Kiwi’ will climb. However, any hints of another rate cut taking place this year would be ‘Kiwi’ negative.
Apart from the scheduled speech, the only other major news this week for the New Zealand economy is the Business Confidence measure for July, which came in at -2.3 last month.
Euro to New Zealand Dollar Exchange Rate Forecast: EUR/NZD expected to remain at Uneven Footing in near Future
For the time being, at least, the Euro seems set to remain bullish against other currencies, as any talk of improving the situation in Greece can only add to the strength and stability of the common currency. The only upset to this rise would likely be a delay or setback in the bailout negotiations, which would once again send the Euro plummeting back down in the exchange rate pairings.
For the ‘Kiwi’, unless Governor Wheeler’s speech holds any particularly unexpected plans that will benefit the New Zealand Dollar, it seems possible that the NZD may soften after an unremarkable analysis. However, last week saw unexpected gains for the NZD on Thursday after the announced 0.25% interest rate cut was lower than expected, so a slight resurgence may still be possible for the commodity currency.
Current EUR, NZD Exchange Rates
The Euro to New Zealand Dollar (EUR/NZD) exchange rate was trending in the region of 1.6720 and the New Zealand Dollar to Euro (NZD/EUR) exchange rate was trending in the region of 0.5987 today.