EUR / NZD (Euro / New Zealand Dollar)
Investors can trade the euro against the New Zealand dollar through the following 3 methods
Buying or selling the currency pair at a bank or financial institution of your choosing, which is considered one of the safest methods. It is also, however, very slow and not as profitable as some of the other options out there.
Trading futures, a leveraged derivative product, which allows you to trade the asset for a percentage of the cost without having to own it. This kind of position also carries significant risk, so it is best to avoid it if you are new to online trading.
Trading online with a regulated, trustworthy brokerage. At CMTrading, we combine our award-winning educational services, advanced trading conditions, and top of the line trading platforms to give our clients an unparalleled trading experience.
What factors influence the EUR/NZD?
When traders approach the euro, they often look at the Eurozone as a whole. A wiser approach would also examine the different major players that would affect the euro’s movements on the global markets the most.
The New Zealand dollar, on the other hand, is mostly affected by its financial reports. These include the quarterly inflation, balance of trade, and the purchasing managers index (PMI).
What to consider when trading the EUR/NZD?
- Given that New Zealand and the Eurozone operate in different time zones, tracking relevant information can be a bit of a challenge. Start your trading day with catching up with what happened so far.
- The European Union is a massive body that sometimes lacks organization, and so even unofficial statements from high-ranking officials can create volatility and opportunities in the market.
- Your acquaintance with the kiwi market is vital to your success in trading its various assets, especially currency pairs such as the EUR/NZD.
Did you know?
Though the New Zealand dollar was originally pegged, it went through a series of changes which ultimately enabled it to float freely in 1985.
To make the currency harder to counterfeit, the Kiwi government manufactures and uses polymer or plastic versions of the currency’s note.