EUR/NZD is quietly on a tear. What it might mean.


EUR/NZD has been the best performer for two weeks straight

Last Saturday I wrote about EUR/NZD being the best performing trade in the prior week. The pair just did it again.

And once again, the euro was easily the best performer while the kiwi lagged significantly.

EUR/NZD has now gained for 8 consecutive days.

Here is how the chart I posted last week looked.

It had just broken the downtrend and the 100-day moving average.

Here’s how it looks now:

It increasingly looks like long-term euro-funded carry trades are rushing for the exits. That could just be some euro optimism, but it could also be a precursor to a negative turn for broader risk assets.