EUR is struggling to gain ground. But unfortunately it seems that its current weakness of EUR will persist. Almost all its counter-currencies are taking advantage of the weaken state of Euro. The current trade scenario is disappointing the traders of this currency. The worst news is that current trading circumstances do not reflect any hope of rise in the worth of Euro in the near term as well. It indicates that the disappointment of the traders will likely to prevail in the coming days.
Inflation figures & Weakness of EUR:
One of the major factors capping the rise of EUR is the disturbing Inflation figures of the Euro zone. European Central Bank has set some Inflation targets and measures of economic recovery for 2021. However the targets of Inflation figures have not met yet. The recent figures of Inflation are still below the predicted targets. Such a scenario does not support the traders of Euro at all. It hints that weakness of EUR will not recover any soon.
Economic Recovery of Eurozone & COVID-19:
The same is the case with the figures of economic recovery of Euro zone. The European countries are far behind UK and USA in the vaccination Program. The slower pace of inoculating the vaccine has capped the growth of Euro as well as the economic recovery of European countries. The recent wave of the pandemic is hitting severely. It has again managed to terrify the world. The extended lock down in the Euro zone seem to last. Thus you cannot expect any boost in the worth of Euro in the coming months. If you are looking for a severe rally of trade activities or a significant pick-up then my friend, Euro is not your cup of tea. You need to be patient in the near term if you are really interested in the trade of Euro.