Latest Eurozone Growth Figures Don’t Slow Euro

The latest forecast from the European Commission isn’t slowing the euro down too much in Forex trading today. Even though the latest numbers for the eurozone aren’t as good as expected, the euro is still doing reasonably well today.

The European Commission just released its latest forecast for the eurozone. The 18-nation currency region isn’t expected to see the kind of growth previously planned for. Indeed, the eurozone’s inflation rate is expected to be 0.8 per cent in 2014 and 1.2 per cent in 2015. The European Commission and the ECB have a target inflation rate of 2 per cent.
Additionally, there are worries about what’s next in relations with Russia. The European Union instigated sanctions against Russia over its involvement in the crisis in Ukraine, including the acquisition of Crimea and the tensions in Eastern Ukraine. Concerns about how that could impact the eurozone, particularly in terms of energy, are also a part of the equation.
However, even with these concerns, the euro is doing reasonably well today. The 18-nation currency is up against the dollar and the pound, even though it is down against the yen.
At 15:26 GMT EUR/USD is up to 1.3879 from the open at 1.3885. EUR/GBP is up to 0.8228 from the open at 0.8224. EUR/JPY is down to 141.6945 from the open at 141.7600.

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