EUR/NZD consolidates post-ECB losses above 1.6900 amid quiet markets

  • EUR/NZD braces for second weekly upside, reverses the previous day’s losses.
  • ECB matched wide market forecasts of inaction, upwardly revised economic projections.
  • Antipodeans benefited from US dollar weakness, hopes of economic recovery.
  • G7 will be the key as EU-UK jostles over Brexit and rumors of anti-China moves getting hot.

EUR/NZD picks up bids around 1.6930, up 0.10% intraday, while reversing the previous day’s losses amid early Friday. The cross-currency pair marked the heaviest losses in a week the previous day after the duo of the key catalysts, namely the European Central Bank (ECB) meeting and the US Consumer Price Index (CPI), backed Antipodeans.

Although the ECB refrained from any policy moves, as expected, its upward revision to the GDP and Inflation forecasts for 2021 and 2022 suggests the policymakers accept reflation fears despite rejecting tapering. That said, the ECB signaled the GDP to grow by 4.6% this year (up from 4.0%) and 4.7% in 2022 whereas inflation may rise to 1.9% for 2021 and 1.5% for 2022.

On the other hand, the US CPI marked the fastest jump since 2008 to 5.0% YoY while the Core CPI rallied to the highest in 30 years with a 3.8% figure.

It should, however, be noted that the US 10-year Treasury yields refreshed a three-month low following the data/event release while also dragging the US dollar index (DXY). This, in turn, backed the commodities and Antipodeans.

Also favoring the New Zealand dollar (NZD) could be the news of the US-China trade and investment peace, for now, as well as chatters surrounding further covid vaccine donation by the UK and the US.

Recently, US bipartisan Senators agreed over a $1.7 trillion infrastructure spending plan and flashed positive signals for the markets.

However, traders are cautious ahead of the key Group of Seven (G7) meeting as the EU-UK will jostle over the Brexit issue under the leadership of US President Joe Biden. Additionally, rumors over the UK and the US-backed push for detailed investigation of covid origin and policies to punish China over labor issues could entertain the EUR/NZD trades.

Technical analysis

Although a three-week-old triangle restricts EUR/NZD moves between 1.6885 and 1.6995, 21-day SMA’s extra support to the 1.6885 figure keeps buyers hopeful.

additional important levels

Today last price 1.6934
Today Daily Change 20 pips
Today Daily Change % 0.12%
Today daily open 1.6914
Daily SMA20 1.6881
Daily SMA50 1.6819
Daily SMA100 1.6767
Daily SMA200 1.7068
Previous Daily High 1.6991
Previous Daily Low 1.69
Previous Weekly High 1.701
Previous Weekly Low 1.678
Previous Monthly High 1.7038
Previous Monthly Low 1.6611
Daily Fibonacci 38.2% 1.6934
Daily Fibonacci 61.8% 1.6956
Daily Pivot Point S1 1.6879
Daily Pivot Point S2 1.6844
Daily Pivot Point S3 1.6788
Daily Pivot Point R1 1.697
Daily Pivot Point R2 1.7026
Daily Pivot Point R3 1.7061



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD struggles below 1.2200 inside falling channel

EUR/USD remains depressed between 100-SMA and 200-SMA inside a three-week-old descending trend channel. Downbeat MACD signals also back the bears, monthly support line adds to the downside filters.


GBP/USD looks shy of regaining 1.4200, Brexit, UK data dump eyed

GBP/USD bulls take a breather following the heaviest run-up in two weeks. UK PM Johnson said US President Biden didn’t alarm about the Northern Ireland situation, Brussels-Britain agrees over fishing catch. Brexit chatters, G7 deal and UK’s April data-flow become the key.


EUR/USD struggles below 1.2200 inside falling channel

EUR/USD remains depressed between 100-SMA and 200-SMA inside a three-week-old descending trend channel. Downbeat MACD signals also back the bears, monthly support line adds to the downside filters.


Dogecoin price may fall 40% as fragile DOGE fundamentals multiply

Dogecoin price has shifted from a wide descending channel to a tighter channel after support folded at the 50-day SMA. The underperformance with Bitcoin and the breakdown in daily active ...

Read more

US Inflation Analysis: As high as it gets? Fed may still stick to “transitory” stance, dollar could suffer

US headline inflation hit 5% in May, more than 4.7% expected. Prices of used cars and airfares were among the upside drivers. The Fed may still see through these reopening struggles and refrain from any major change.

Read more