EUR/NZD

EUR/NZD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the New Zealand dollar (symbol $, code NZD).

The pair’s rate indicates how many New Zealand dollars are needed in order to purchase one Euro.

For example, when the EUR/NZD is trading at 1.8600, it means 1 euro is equivalent to 1.86 New Zealand dollars.

The Euro (EUR) is the world’s second most traded currency, whilst the New Zealand dollar (NZD) is the world’s tenth most traded currency.

Although the pair isn’t as liquid as other Euro based pairs, it still offers traders ample opportunities for technical speculation.

How to Trade the EUR/NZD

Trading the EUR/NZD probably is more suited for longer timeframes, with spreads generally between 2 and 5 pips on most forex brokers.

Key economic releases for this pair include the German ZEW Economic Sentiment for the Euro, which measures an index pertaining to a German institutional investors and analysts survey.

Moreover, the GDT Price Index for New Zealand is also important, which measures the change in the average price of dairy products sold at auction.

For example, a higher actual release than expected gives the New Zealand Dollar strength, resulting in a bearish movement for the EUR/NZD.

Trading the EUR/NZD doesn’t lend itself very well to lower time frame trading, and scalping this cross is not a sound strategy, since not only are the spreads unwelcoming, its price action is even less hospitable,

The pair is known for erratic movements in price action due to volatility, which can either be a concern or an asset for traders.