Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
EURNZD Looking to Push Even Higher

EURNZD Looking to Push Even Higher

Nick Cawley, Senior Strategist

Share:

What's on this page

EURNZD Dollar News and Talking Points

- New Zealand GDP missed expectations last week.

- The RBNZ will leave rates unchanged for the foreseeable future.

The Traits of Successful Traders and how to find the Number One Mistake Traders Make are just two of the most widely read reports in our Free Trading Guides.

EURNZD Will Push Higher as RBNZ and ECB Monetary Policy Outlook Diverges

EURNZD is currently approaching its highest level since mid-Decemberand is set to continue to make new highs ahead of the RBNZ latest monetary policy announcement late Wednesday. The central bank is expected to leave all monetary policysettings unchanged – interest rate at 1.75% - especially after last week’s GDP figures missed market expectations. The RBNZ is also expected to change focus soon and look to expand employment as well as keeping inflation in check, meaning an accommodative central bank will be expected to keep rates low for longer.

The European Central Bank on the other hand is currently battling when it should finally end its current bond buying program (QE) and how and when it should start raising rates. The latest ‘ECB sources’ stories point to a central bank shifting the debate to interest rates and away from QE with a rate-hike in mid-2019 now starting to get priced into the market. While any rate hike is at least one year away, any official timetable from the ECB on rate hikes will push the EUR higher with the single currency receptive to any ECB chatter.

While the EURNZD chart looks overbought on the stochastic indicator, a break above the March 8 high of 1.71320 will open the way to late the December 1 high of 1.74820.

EURNZD Price Chart Daily Time Frame (October 11, 2017 – March 21, 2018)

Chart by IG

Are you new to FX trading or are you looking to improve your trading skill sets? We can help you along your journey with a comprehensive range of constantly updated guides and trading tools – they are all Free to Download Here.

What’s your opinion on EURNZD?Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at nicholas.cawley@ig.com or via Twitter @nickcawley1.

--- Written by Nick Cawley, Analyst

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES