EURNZD January 2026 fundamental analysisEuro/New Zealand DollarFX:EURNZDOneirotradeEUR/NZD Current Level: 2.0302 | 1-Month Change: +1.29% | Trend: Uptrend Fundamental Analysis: EUR/NZD shows strength as the euro benefits from better economic growth prospects in 2026 compared to New Zealand. The ECB holds at 2.00%, creating a 25-basis-point differential against EUR over the RBNZ's 2.25% rate. The RBNZ has signaled the end of its easing cycle, with the next moves being potential hikes from mid-2026. However, this is still well in the future and the market is pricing in OCR stability through most of 2026. New Zealand's economy remains weak with excess capacity, while the eurozone is poised to accelerate with fiscal stimulus. Despite the small interest rate disadvantage, the better growth prospects for the eurozone supports EUR strength. NZD has benefited from risk-on sentiment (as a higher-yielding currency), but this advantage is becoming limited as economic differentials persist. Recent Price Action: Uptrend with +1.29% monthly gain reflects steady euro strength. Momentum is positive with the pair establishing higher lows. Verdict: BUY – Dissipating interest rate differential, improved eurozone growth prospects, and RBNZ's limited near-term tightening all support EUR/NZD strength through January.