The European currency comes closer to 1.60 point in relation to the USD. Now it has finally reached 1.5983 point after the issue of the quite positive trade balance data. The situation however was affected by the announcement of the Eurogroup President Junker when he said that the G7 Forex statement was not understood properly by the markets and the growth of the Euro is not something essential at the moment.
Such news was instantly followed by Euro fall in relation to the USD. However it is not the first time the European Union President makes similar announcements. In the previous month Junker expressed his thoughts concerning overestimation of the Euro and in the past September he was concerned that growing Euro will be a problem rather then a solution. So there is nothing new concerning his worries about the Euro growth.
Therefore we would better consider the European Central Bank actions as this body is really able to take important decisions concerning the currency and monetary policy. One of the ECB officials expressed similar to Junker idea but he was sure that the G7 is quite single valued. Considering his words concerning next inflation outlook we can suppose it is a still one of the essential problems facing EU. And the high oil prices are the best explanation of such ECB heed to growing prices. Moreover, despite the Eurozone gained some trades surplus instead of deficit in the February 2008 we can see that the growth doesn’t slows greatly. Throughout several years the export growth exceeded the growth of the import. And as 80 percent of the German exports count in Euro the companies of this country are only slightly affected by the currency translations. Therefore only the announcement of the European Central Bank President can change the situation and make Euro to slow its growth.