Will a Strong Euro Tie the ECB's Hands?

Policymakers in the euro zone are keeping a close eye on exchange rates as the euro nears the $1.40 mark

Exchange rates are on the radar screen for policymakers in the euro zone—the 12 countries that use the euro as their common currency—as the euro's continued rise vs. the U.S. dollar has placed it near the $1.40 mark. Action Economics doesn't expect current foreign exchange levels to curtail the euro zone's economic recovery or prevent the next rate hike by the European Central Bank (ECB), which we currently expect in September.

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