Euro to New Zealand Dollar (EUR/NZD) Exchange Rate Flat; Germany’s Trade Surplus Falls
The Euro (EUR) to New Zealand Dollar (NZD) exchange rate is presently trading at 1.5824. The Euro has remained relatively flat in the latter week trading amid global conflict and Eurozone recovery worries.
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This session has witnessed highs of 1.5842 at the Euro’s pinnacle against the New Zealand Dollar (NZD) whilst also reaching session lows of 1.5750.
However, recent figures have caused the European Central Bank (ECB) to comment that they believe the Eurozone recovery is remaining ‘weak, fragile and uneven’.
An Italian banker commented: ‘The picture is getting worse rather than better.’
The Euro is also trading amid escalating geopolitical tensions as President for the US, Barack Obama, authorises air strikes in Iraq.
HSBC representative Kosuke Hanao commented: ‘We’ve often said financial markets are separated from geopolitical risks, but this one could affect Europe where economic sentiment has been worsening.’
Germany’s trade surplus fell to €15.0B in June, despite forecasts to attain €18.9B.
Conversely the New Zealand Dollar has fallen in the currency market of late following a dip in commodity prices impacting the currency.
However with recent escalations regarding Russia and Ukraine, the New Zealand Dollar may witness some effects. The most recent sanctions placed against Russia have caused the Russian President, Vladimir Putin, to retaliate, banning the importation of dairy and other produce into Russia.
Russia is presently the second largest dairy importer globally which could spell some volatility for the ‘Kiwi’.
Currency Expert Sam Tuck stated: ‘European supply destined for Russia may need to find a new home. That could increase the supply of dairy products in markets outside of Russia where New Zealand, a top exporter of dairy, competes.’
Next week will see the publication of New Zealand Card Spending figures on Sunday, whilst the Eurozone may find further disappointment in the German Consumer Price Index and Eurozone Industrial Production figures on Wednesday. Furthermore, Wednesday will also see the release of the New Zealand Performance of Manufacturing Index.
For now the NZD to EUR exchange rate looks set to remain flat in the currency market, currently trading at 0.6316; however, with both currencies volatile to any conflict escalations, the exchange rate could fluctuate.
As commodity prices for New Zealand could cause a devastating effect on the New Zealand economy, the ‘Kiwi’ may be destined to trade lower against other majors for some time.