Euro Drops on Warnings of Long-Term Economic Damage

Euro is dropping today, losing ground against most of its major counterparts as ECB President Mario Draghi warns that recent years might have taken a long-term toll on the economic condition of the 19-nation currency bloc.

Even though the latest economic news out of Germany is encouraging, the euro is struggling today in Forex trading. ECB President Mario Draghi shared remarks at the Brussels Economic Forum, expressing concerns about the possibility of permanent damage to the eurozone economy. Draghi insists that monetary easing isn’t enough to stem the tide, and that structural reform may be necessary.
Even though growth has improved in the eurozone economy, there are still concerns about deflation. As a result, the ECB recently introduced a program designed to purchase corporate assets — not just government asset. The use of the euro is declining on a global basis, and there are concerns about the currency’s future, especially if problems in countries like Greece continue to plague the system and drag on the currency.
For now, though, some are focusing on Germany’s better than expected Trade Balance and hoping that it means better things ahead.
At 15:45 GMT EUR/USD is down to 1.1325 from the open at 1.1394. EUR/GBP is down to 0.7824 from the open at 0.7855. EUR/JPY is down to 120.17 from the open at 121.90.

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