Uncertainties hound euro

UNCERTAINTIES over eurozone growth, budget requirements of monetary union and upcoming photo-finish German elections are holding back the euro, confounding predictions earlier this year that it would soar.

The euro is failing to capitalise on the potentially dollar-negative impact of a possible war between the United States and Iraq or from economic woes in Japan.

“From a fundamental perspective, the euro is not gaining support, growth is a major concern for the eurozone,” said Mitul Kotecha, head of global foreign exchange research at Credit Agricole Indosuez. “The euro has failed to sustain its momentum on a move above parity, which does suggest it will continue to struggle.”