Eurozone Economy Improves, But Euro Still Struggles

Euro continues to struggle today, even after evidence that the eurozone economy is improving. In fact, eurozone economic progress is beating expectations. However, Greece and Ukraine continue to raise questions, and the ECB is still preparing to go forward with its money printing program. These items weigh on the 19-nation currency.

Reuters recently compiled a variety of economic data from the eurozone and found that things have improved more than expected. From GDP to retail sales to other data, it all seems to be beating expectations. However, even with evidence that the eurozone economy is improving, the euro continues to struggle in Forex trading.

Part of it has to do with concerns about Greece and Ukraine. Even though a bailout extension was granted, there are worries that the drama is far from over. Additionally, the conflict in Ukraine continues, and sanctions against Russia could take a toll as Russia reciprocates.

Not only that, but deflation fears have the ECB still determined to move forward with its plan to inject one trillion euros into the economy. All of this points to euro weakness for some time to come.

At 14:44 GMT EUR/USD is down to 1.1113 from the open at 1.1176. EUR/GBP is down to 0.7255 from the open at 0.7272. EUR/JPY is down to 132.8280 from the open at 133.7630.

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