ECB officials concerned about strong Euro

10-20-2009 09:08

The Single Currency remained near the highest rate in 14 months against the Greenback this Tuesday, while concerns over the current strong levels of the Euro arise among European Central Bank policymakers, as a strong European Common Currency may hinder the economic recovery of the Euro nations.

Strong Euro concerns

Europe's Single Common Currency not only benefits from commodity-linked currencies such as the Brazilian Real and the Australian Dollar, but also from the positive sentiment towards risk-taking, which occurred as a result of indications in the initial quarters of 2009 that the worldwide recession is bottoming out. Despite the fact that concerns regarding a strong Single Currency and a weakened Greenback emerged among ECB representatives, investors continue to prefer the Eurozone currency this week’s trading session, due to firms, such as Apple Incorporated, reporting higher profits in the third quarter than forecasted, on which the EUR/ USD pair approaches the $1.50 level.

ECB measures

While the European Common Currency continues to climb, particularly against the Greenback and the Sterling, the ECB could opt for alternative effective measures to end the rise of its currency, since ECB officials are already concerned. The Single Currency will continue its bullish sentiment and it is not expected that this trend will change before the end of 2009 if the ECB fails to take measures, according to currency analysts.