Forecasts for EUR to NZD
The EUR to NZD exchange rate currently reflects a mixed landscape, with the EUR trading near 30-day lows at approximately 1.8856, close to its three-month average. This level has seen considerable volatility, ranging from 1.8217 to 1.9799, indicating potential market fluctuations ahead. Analysts have pointed to multiple factors impacting the euro's performance, notably the ongoing political uncertainty in Germany, following challenges faced by Chancellor-Designate Friedrich Merz. Should he secure a stable government, this could bolster the euro, especially with an anticipated increase in German factory orders.
Conversely, the New Zealand dollar (NZD) remains under pressure, influenced by recent job data that showed an uptick in unemployment. The NZD has been relatively stable despite external pressures, particularly from tariff announcements by U.S. President Donald Trump on imports from New Zealand and other countries. Such measures could dampen demand for New Zealand's key commodities, which are critical to the currency's strength.
The underlying economic indicators for both currencies show a trend where the euro's value is heavily influenced by European Central Bank policies and geopolitical events, particularly involving Russia and the ongoing war in Ukraine. As the energy crisis continues to have repercussions, fluctuations in oil prices can also affect the euro's strength. Currently, oil is trading at 62.15, which is significantly below its three-month average, indicating a broader impact on energy-dependent economies and corresponding currencies.
Moving forward, the EUR/NZD exchange rate will likely be influenced by forthcoming economic data releases, geopolitical developments, and market sentiment regarding the U.S. dollar’s performance. As such, traders and businesses engaged in international transactions should closely monitor these factors to make informed decisions regarding currency exchanges.
