Euro continues to log gains, even as many throughout the eurozone express concern about the euro’s recent appreciation. There are worries that the euro’s strength has been keeping the eurozone from seeing the kind of economic growth that would help the region overcome its recent problems.
Euro is higher again today, rising pretty much across the board. Since the middle of 2012, the euro has gained about 9 per cent against the US dollar. This appreciation is one of the problems with seeing a true recovery in the eurozone economy, according to many policymakers.
Policymakers have been expressing concern about inflation. The latest numbers show only a 0.8 per cent annual rate in February, which puts it well below the target of 2 per cent. Even though the eurozone appears to be seeing some growth, it is stagnating, and there are worries that the 18-nation currency region could slip back into recession. It doesn’t help that, once again, industrial output fell across the eurozone.
Since a strong euro seems to be hindering the economic recovery in the eurozone, there is speculation that the ECB will have to change its policy at least a little in order to boost growth.
At 13:48 GMT EUR/USD is up to 1.3897 from the open at 1.3860. EUR/GBP is up to 0.8364 from the open at 0.8341. EUR/JPY is down to 142.5965 from the open at 142.7790.
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