Euro Steady Ahead Of Economic Data This Week
The euro began the week trading steadily at $1.2757 at 7:00 GMT on Monday morning.
The common currency could be in for another fall if the region’s recovery continues to decline as investors lose confidence.
Despite its best efforts, the European Central Bank has been unable to pull the eurozone out of its economic slump.
The bank has done just about everything in its power to boost economic activity and has little left in its war chest other than a large scale asset purchase program, something that has been a point of contention among eurozone policymakers.
Many of the region’s lawmakers believe a large scale quantitative easing program is the next logical step in the eurozone’s recovery.
However, some believe that the ECB’s stimulus will do little to remedy the bloc’s situation without more structural reforms within individual eurozone nations.
The Wall Street Journal reported that several central bankers spoke out against any further easing from the ECB on Friday.
Bundesbank President Jens Weidmann called for eurozone governments to make the reforms necessary in order to promote competition and innovation while executive board member Benoit Coeure said it was essential for all nations to follow through on their reform commitments. Coeure underscored that although economic overhauls can be both challenging and painful, times of crisis call for dramatic changes.
While the ECB doesn’t look likely to implement any further easing packages in the near future, it remains to be seen how the bloc will fare in the third quarter.
A recent string of disappointing data has many convinced that some of the bloc’s largest economies could be heading for a technical recession.
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