Eurozone Growth To Be A Hot Topic At G20 Summit

The euro held on to its strength on Tuesday and traded at $1.3790 at 5:55 GMT. The common currency was riding a wave of positivity after European Central Bank officials made comments on Monday which indicated that quantitative easing was a long way off. At its April policy meeting last week, the ECB ignored calls to step in and maintained its current monetary policy despite the region's falling inflation figures. Bank President Mario Draghi commented that the bank is ready and able to act, but needs another month's inflation data in order to make an informed decision. Some of the bank's policymakers spoke of the possibility of using unconventional measures such as a negative deposit rate or an asset buying program in order to inject funds into the bloc's financial system, but ultimately the ECB chose to wait another month. However, recent comments emerging from the bank show that it could be more than one month until the bank steps in. The remarks boosted confidence in the common currency and helped drive it toward $1.38. Meanwhile, leaders from advanced and developing economies prepared to meet in Washington for the Group of 20 meetings. Though tension in Ukraine is hot on everyone's mind, the group is expected to focus more on economic growth plans than on the conflict in Ukraine. The eurozone will be under the microscope as the region's falling inflation and slow moving recovery are a concern for the global economy.

reported that a German official is planning to tell the IMF and G20 leaders that the risk of deflation in Europe is minimal at the meeting. Instead, he wants to note that the region's extremely low inflation is the result of wage increases and lower energy prices; thus allowing the ECB more time before stepping in.