A weaker NZD against the EUR? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Listen to the latest market mood for the EURNZD pair.

Strong EUR, Weak NZD

The RBNZ has launched a set of bearish policies extending its asset purchases programme and being open to negative interest rates. They increased their quantitative easing (LSAP) programme to $100bn and extended its length from 12 to 22 months. Furthermore, the RBNZ expressed a preference for a lower or negative OCR and a ‘Funding for Lending Programme’, while leaving all options on the table. This should mean a weaker NZD against the EUR for the next session.

Therefore expect buyers at the market on the EURNZD pair.

We expect this trade to play out between now and the next 8 hours.

Trade Risks: If we see any very bearish news for the EUR that will invalidate this trade.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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