EURNZD is a currency pair consisting of the euro and the New Zealand dollar. It is one of the most volatile Forex instruments. The average daily movement can reach 300-350 points, which exceeds the volatility of the main popular pairs and makes it possible to get much more profit while trading this instrument.
The Euro (EUR) is the official currency of most member states of the European Union and the second most traded currency globally after the US dollar. Since the single European currency, the euro, reflects the state of the Eurozone economy, its exchange rate is affected by the financial and political situation in each member state. Sudden changes in the indicators of one or more EU member states can significantly affect the euro.
The New Zealand dollar is the currency of New Zealand and some of the Pacific Island countries. It is one of the highly profitable commodity currencies. The NZD is called a commodity currency because New Zealand's economy depends on the export of raw materials and goods such as dairy products, meat, and timber. Any changes in the prices or production of these products will affect the price of the New Zealand dollar.
The EUR/NZD pair closely correlates with the EUR/AUD. The latter, however, is characterized by less abrupt changes. The simultaneous movement of both currency pairs is explained by the interconnection and similarity of the economies of major trading partners, New Zealand and Australia. The EURNZD rate is influenced by the foreign and domestic economic policies of the Eurozone countries and New Zealand. However, when forecasting the prices of this trading instrument, it is necessary to consider the main macroeconomic indicators of the US (discount rate, GDP level, labor market data) and other fundamental factors related to the issuing countries.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
