The New Zealand Dollar (NZD) dropped to 0.6165 (1.6220) late Thursday against the Euro (EUR) on risk optimism. Ukraine-Russian talks failed to bring any progress on a ceasefire and the European Central Bank said it would phase out bond buying sooner than expected, paving the way for interest rate hikes later in the year. The problem with this is it brings up the notion of a challenging time for the ECB to avoid possible stagnation. The Euro sold off on the headline to 0.6255 (1.5985) early this morning. The ECB is more focused on higher inflation rather than slowing economic growth it seems. Pressure in the pair is swayed to the topside for now but things can change very quickly in this changing market.
The current interbank midrate is: NZDEUR 0.6236 EURNZD 1.6035
The interbank range this week has been: NZDEUR 0.6167- 0.6396 EURNZD 1.5634- 1.6215