A risk off tone has seen the Euro (EUR) pick up the pace this week against the New Zealand Dollar (NZD) posting a 3 week low in the pair of 0.6210 (1.6100) heading into Friday. This comes as the RBNZ’s inflation spiked to a 30 year high of 6.9% midweek, slightly lower than expectations of 7.1% and surprisingly not moving the kiwi higher. The ECB left their cash rate unchanged last week but said their asset purchases could come to an end in the third quarter. Lagarde speaking overnight said Eurozone economic risks are skewed to the downside with core inflation at 2.9% and “manageable”. The Euro is certainly buoyed by prospects of rate hikes starting in July, this coupled with risk off markets and we could see a further slide in the pair over the coming week’s war dependant.
The current interbank midrate is: NZDEUR 0.6205 EURNZD 1.611
The interbank range this week has been: NZDEUR 0.6205- 0.6287 EURNZD 1.5904- 1.6116