Eurozone finance ministers will meet to discuss developments surrounding the euro exchange rate, Reuters reported on Thursday, citing a senior EU official. However, the official further noted that ministers are unlikely to raise concerns over the euro strength. Key takeaways from EU Commission paper “Further substantial strengthening of the euro would carry significant downside risks to eurozone growth, inflation.” “A long-lasting 5% appreciation of euro nominal effective exchange rate could cut GDP growth by 1.1-0.9% after one year, reduce inflation by -0.8 to -0.5%.” “Global evolution of pandemic will be a key determinant of exchange rate movements in the next months.” “Euro would consolidate recent exchange rate gains if eurozone countries keep infection rate under control and continue on the path of economic recovery.” “Euro gains consolidation more likely if the US and emerging markets do not achieve a major and sustained turnaround in numbers of infected people.” “EUR/USD exchange rate likely to get more volatile in the run-up to US presidential elections.” Market reaction The EUR/USD pair edged slightly lower with the initial reaction to this report and was last seen gaining 0.2% on the day at 1.1743. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next ECB’s de Guindos: Inflation to be negative or very close to zero for rest of year FX Street 2 years Eurozone finance ministers will meet to discuss developments surrounding the euro exchange rate, Reuters reported on Thursday, citing a senior EU official. However, the official further noted that ministers are unlikely to raise concerns over the euro strength. Key takeaways from EU Commission paper "Further substantial strengthening of the euro would carry significant downside risks to eurozone growth, inflation." "A long-lasting 5% appreciation of euro nominal effective exchange rate could cut GDP growth by 1.1-0.9% after one year, reduce inflation by -0.8 to -0.5%." "Global evolution of pandemic will be a key determinant of exchange rate movements in the next months." "Euro… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
