Euro supporting New Zealand’s largest goods export, dairy - ANZ
|Analysts at ANZ noted that recent currency movements seem to be providing some positive support for commodity prices.
Key Quotes:
"While the focus is usually on the USD (and its recent weakness is no doubt helping global commodity prices) the Euro also appears to be supporting New Zealand’s largest goods export – namely dairy.
While US milk supply continues to grow steadily (1.5-2%) and the lower USD is making exporting more attractive, Europe remains New Zealand’s largest direct competitor.
With milk production struggling due to weather challenges and the 10% appreciation in the EUR/USD since the start of the year, both appear to be weighing on their export volumes. This dynamic looks to be providing some support to global dairy prices at present."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.