Euro is Increasing Close to 1.15 Level

The euro has significantly strengthened and is trading at 1.1460. Earlier today, the euro/dollar rose to 1.1489, which is the highest level since May 1. Such a rapid growth of the euro against the US dollar was caused by growing political tensions in the United States.

Inflation levels in Germany and the Eurozone remain well below the ECB 2% target, and as long as this situation continues, the ECB is unlikely to reduce its package of aggressive incentives. Tomorrow Germany will publish the final consumer price index. In the second quarter, the index was weak, and the June estimate was 0.2%.