NZD/USD Rate Approaches 2020 High as Net Short Exposure Persists

There is an ongoing discussion about whether the NZD/USD Rate Approaches 2020 High, or if it will stick around for the long-term. There is a lot of fear and uncertainty about the future of this market. Some believe the current trends will continue.
The NZD/USD Rate Approaches High has also been seen as a potential threat to the Eurozone, particularly with the political crisis between Greece and its creditors. With so much uncertainty, there is also a great deal of hope for a successful outcome.
Many believe the current NZD/USD Rate Approaches High is a direct result of the European Central Bank (ECB) lowering its main interest rate to an all-time low, by an annualized rate of 0.5%. This move may be in response to the rising number of defaults in the United States. The lower interest rate will be a boost for the US economy, but it may not be enough to encourage businesses and homeowners to make their repayments.
Some believe this move will force the European Central Bank to tighten its grip on its own currency, the Eurozone. It may be forced to take a hard line against banks in order to protect its own currency, which has lost a great deal of value. The Bank of England has also been widely reported to have held talks with the European Central Bank regarding a possible interest rate cut.
Some believe the EU will be forced to cut its own interest rate as well, which could push the NZD/USD Rate Approaches High even further. As it stands now, the Eurozone’s main interest rate has remained at an all-time low, meaning there is little room for deviation from the norm.
Others believe the NZD/USD Rate Approaches High is not due to a global event but rather a localised one, such as a shift in investor sentiment towards the United States Dollar. If a new US President is elected, they believe this could result in a shift towards the USD, and that the NZD/USD Rate Approaches High could be reversed.
The best way to gauge the likelihood of the NZD/USD Rate Approaches High is to look at the behaviour of other currencies. There are some indicators which show a clear upward trend. such as the Euro and Swiss Franc. However, there are some charts which show a downward trend.
One can only hope that the NZD/USD Rate Approaches High is a short-lived blip. With the global economic outlook now looking strong, there is certainly time for the NZD/USD Rate Approaches High to be beaten back.
For this reason, it is important for people to understand that the global economic outlook is not going to change overnight. In fact, it may well take years for any significant change to occur.
Some believe a change in the NZD/USD Rate Approaches High may be caused by a change in the US President. This will happen if a new President is elected, and he or she intends to change the current trend of monetary policy.
Others say the NZD/USD Rate Approaches High could be caused by the Federal Reserve reducing the size of its balance sheet. and increasing its interest rates.
The global economic outlook is not going to change overnight, but it could change over the course of a number of months or years. The more people focus on the future of global economic growth, the more they will need to pay attention to the NZD/USD Rate Approaches High and other possible changes.
If the US Federal Reserve lowers interest rates, the NZD/USD Rate Approaches High may be beaten back. However, the long term outlook for US economic growth is still looking strong.