The EUR to NZD exchange rate currently shows a bearish bias, reflected by recent developments in both currencies.
The key drivers include:
- The European Central Bank (ECB) has maintained interest rates, expressing concern that a stronger euro could harm inflation control.
- New Zealand’s GDP data has disappointed markets despite initially strong figures, undermining confidence in the NZD.
- Global uncertainties, particularly around trade policies and geopolitical tensions, weigh heavily on both currencies' performance.
Over the next 1–3 months, traders can expect the EUR/NZD exchange rate to remain within a stable range, reflecting its recent volatility and market uncertainties.
Upside risks could arise from improved Eurozone economic indicators or unexpected positive shifts in ECB policy. Conversely, downside risks may stem from possible further rate cuts by the Reserve Bank of New Zealand or ongoing geopolitical tensions that impact trade dynamics adversely.