The euro continues its ongoing for five days downtrend. Meanwhile, from the USA comes strong criticism of the monetary policy of the ECB.
Euro at its lowest level in four weeks ago
The skepticism of investors against a possible recovery in the euro zone continues. Also the economic data from the euro zone contribute, which may seem stable overall, but not indicate a sustained recovery. While the data released today showed that the Spanish industrial output rose more than expected, the French industrial production is stagnating, however. Yesterday was found that in Germany, the largest economy in the euro zone, the new orders in the industry fell unexpectedly sharply. After the euro had recovered somewhat after the decision on the bond-buying program, he falls again today under the mark of 1.06 US-dollar, and reached 1.0570 dollars, its lowest level in the last four weeks. Even against the other major currencies the European single currency has further loses. Against the Japanese yen, the euro falls by 0.87%, currently at 127.41 yen.
USA criticize loose monetary policy of the ECB
From the United States today comes a strong criticism of the ultra-loose monetary policy in the euro zone and in Japan. The main concern is on the point that the economy is trying primarily to strengthen on higher exports, without supporting their own domestic demand. In the estimation of the United States, as it is similar also expressed by the IMF, the current approach can not only affect trade relations but also damage the global economy sustainable. However, reference is made in Europe that the US itself, after several years of loose monetary policy, only now seriously consider to change it. An exact date for raising interest rates by the Fed is indeed still pending. The biggest criticism from the United States is directed against Germany, that most of the growth generated by exports, and will overtake probably China, with a trade surplus of almost 8 percent. The United States also referred to the fact that the German growth occurs at the expense of the economically weaker countries of the monetary union.
