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.