Euro Jumps to Multi-month Highs Vs Kiwi As Catalonia’s Political Tensions Ease

The euro soared to nearly-30-month highs versus the New Zealand dollar on Wednesday. While the single currency strengthened after strong economic data out of Germany and easing concerns over Catalonia’s political tensions.

The pair EURNZD added 0.11 percent to trade at NZ$1.672 in European trading session on Wednesday. The euro extended its rally to a seventh consecutive trading session and boosted the price to the highest level since May 13th, 2016. The euro’s rally was boosted after Catalan leader Carles Puigdemont on Tuesday backed away from a declaration of independence from Spain. The action helped open the door to negotiations with Madrid and avert an immediate crisis.

Meanwhile, the Kiwi remained weak after a final vote count from a general election held two weeks ago failed to identify a clear winner. New Zealand’s election officials on Saturday released the final 17 percent of the vote tally which pointed to a conclusion that the conservative National Party ended with 44 percent of the vote, while the liberal bloc of the Labour Party and the Green Party ended with a combined 43 percent.

Moreover, small New Zealand First party, which finished with 7 percent of the vote and holds the balance of power, is holding a fourth day of talks aimed at forming the next government. However, the party hasn’t indicated which of the larger parties it favors to form coalitions, leaving the nation’s currency under political uncertainty.

Trade suggestion

Buy Stop at 1.67300, Take profit at 1.68000, Stop loss at 1.67000

 

Write a Comment

Your email address will not be published. Required fields are marked *