EURNZD sellers ahead?
The eurozone is struggling to roll out vaccines and there is a growing risk of a third wave embracing the eurozone. This will mean a slower re-opening of European Countries and is likely to weaken the euro. The more serious the latest case count rise becomes, the weaker the euro will likely become.
In contrast, the RBNZ has enough vaccinations for its entire country. Remember that New Zealand has been one of the best nations in handling COVID-19 infection rates.
This means that the next week could see EURNZD sellers on pullbacks as a potential divergence further opens up between the eurozone and New Zealand.
- Any significant improvement in the outlook for Europe and the spread of COVID-19 will invalidate this outlook.
- Any negative developments for New Zealand will also negate this outlook.