The slowdown in the eurozone's economy is still affecting EUR gains against USD. If EUR gains certain momentum, it may lose grounds further against USD. Despite a downbeat US GDP report released last week, USD managed to sustain pressure over EUR. So, at present market sentiment is still in favor of USD.
As the eurozone's economy is easing a pace of economic growth, the ECB has put off the plans to return to normal monetary policy. So, a rate hike has been delayed. The ECB interest rate has already been held at the record low of 0% for a long period. Downside risks require further actions from the governments of EU countries. Nowadays, the ECB has not been able to handle the pressure of a slowdown on its own. OECD chief economist Boone said that further involvement of public investment is needed but that might not be enough undre the current conditions.
