Inflation, while short of the ECB's target of close to but below 2 percent, is slowly gathering a bit of momentum; deflation no longer seems like an existential concern. All this means the ECB is likely to soon begin paring back its stimulus. It should proceed and not worry overly about the euro. Be mindful of policy impact, for sure. And be humble: Remember that Frankfurt has limited ability, by itself, to influence the overall dynamics of currency markets.
Is ECB ready to cut stimulus down?
There were no data releases from Eurozone today. Europe is getting back in the game, and the world economy is all the better for it. The European Central Bank shouldn't spend too much time worrying about whether its actions curb the euro. After all, the currency's 12 percent appreciation against the dollar this year reflects mostly what's going right for the euro region: Its expansion is picking up, with Germany, France and Italy reporting relatively robust increases in gross domestic product. And the region's labor markets are continuing to heal.
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