The EUR/NZD pair is the abbreviated term used for the Euro & New Zealand dollar. This pair does not have a nickname. Before we get into the particulars, what exactly does the EUR/NZD rate mean? The exchange rate tells you how many New Zealand dollars (the quote currency) are required to purchase one euro(base currency). For example, if the pair is trading at 1.69, it means it takes 1.69 New Zealand dollars to buy 1Euro.

EUR/NZD Forecast update

The EUR/NZD exchange rate is currently trading at 1.7535, down from its high of 1.7611 on June 15, 2023. The currency pair is under pressure due to a number of factors, including:

• The strengthening of the US dollar against other major currencies
• The slowdown in New Zealand's economic growth
• The widening of the New Zealand-European Union trade deficit

Looking ahead, the EUR/NZD exchange rate is expected to remain under pressure. However, there are a number of factors that could support the currency pair, including:

• A slowdown in the US economic growth
• A trade war between the US and the European Union
• A depreciation of the euro

EUR/NZD Analysis

The EUR/NZD exchange rate is currently trading in a downtrend. The currency pair has been forming lower highs and lower lows since June 15, 2023. The RSI is also in a downtrend, which suggests that the selling pressure is likely to continue.

EUR/NZD Buy or Sell Today

Traders who are looking to buy the EUR/NZD exchange rate could consider doing so at the current levels. However, traders should be aware of the risks involved, including the possibility of further weakness in the currency pair.

Breaking Down EUR/NZD

The euro (€; EUR) is the official currency of 19 of the 28 member states of the European Union. The euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar. The euro is divided into 100 cents.

The New Zealand dollar (NZD) is the currency of New Zealand. NZD is made up of 100 cents and this currency is officially represented by the symbol $ or NZ$ to set it apart from other currencies based in dollars. we can use this currency in Cook Islands, Niue, Tokelau, and the Pitcairn Islands. this currency nickname is kiwi and the reason behind of its nickname that national bird found stamped on the one-dollar coin. The decimalization of the currency took place in 1967 when the New Zealand dollar replaced the New Zealand pound at a rate of two dollars to one pound

New Zealand has a market economy that is hugely dependent on global trade, largely with Australia, the European Union, the United States, China, and Japan. It has just small production and high-tech areas, as it is mainly focused on tourism and basic industries like agriculture. in 2005 the World Bank praised New Zealand for being the most business-friendly country in the world

What Determines the EUR/NZD Exchange Rate?

Several factors can impact the EUR/NZD rate valuation, including:

ECB & RBNZ Monetary Policies: The European Central Bank and Reserve Bank of New Zealand control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency.

Economic Events: The movement in the European and England economic events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Euro NewZealand dollar, causing fluctuations in the EUR/NZD exchange rate.

Currency Correlations

Correlation is merely a mutual relationship or connection between two or more things.

Positive correlation – The positive relationship merely is when pairs move in tandem with each other.

In the forex world, the NZD/CAD, NZD/USD and AUD/NZD currency pairs are positively correlated

Negative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction. For example, NZD/CAD, NZD/USD, and XAG/USD pairs share a negative correlation.

The euro is one of the most important alternatives to the U.S. dollar among fiat currencies (the EUR/USD currency exchange rate is one if the most often traded pairs in the world). This is why there is often a positive link between the euro and gold: both assets are negatively correlated with the greenback. However, the relationship is far from New Zealand (NZD) has a close relationship with gold prices and oil prices.

While the correlations (positive or negative) can be significant

EUR/NZD Specifications

The EUR/NZD is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $6.63