Eurozone Policy Makers Pledge to Slow Down Fiscal Tightening

The euro received a much needed boost on Friday morning after US data showed that the number of unemployment benefit claims in the nation rose last week. Also weighing on the greenback was a dip in the country's April Mid-Atlantic factory activity. The euro traded at 1.3091 at 9:12 GMT on Friday morning. The euro has been under a lot of pressure recently as one by one struggling members of the bloc began to resist the region's austerity centered recovery efforts. In Italy, an inconclusive election highlighted the country's frustration with the ongoing tax hikes and spending cuts. Protests in Spain and Greece have flooded the streets and at times turned violent. Cypriot members of the nation's parliament were the first in the region to turn down the European Central Bank's bailout terms, stating that forcing the debt burden on all of the country's account holders would be robbery. Now, as policy makers and central bankers from around the world meet in Washington for the second and final day of talks at the Group of 20 advanced and emerging economies meeting, eurozone lawmakers are pledging to slow down the austerity measures in order to help spur the economy.

reported that EU Economic and Monetary Affairs Commissioner Olli Rehn said the region is headed for a policy shift which will slow the pace of budget tightening. Rehn claimed that the sharp spending cuts were necessary in order to repair the region's credibility. Now that the short term problems have been resolved, he said the block is open to slowing down fiscal tightening.