Euro Penalized for Lack of Economic Stimulus

Euro zone could use help, too

Right now, the forex market seems to want to reward those currencies connected with strong economic stimulus packages. With the U.S. on the verge of passing something that will cost more than 0 billion, the U.S. dollar appears to be reaping the benefits — at least against the euro. (Greenback is down against the Japanese yen, however.)

The euro zone economy continues to languish, and measures by the ECB and other monetary policy leaders are generally thought to be inadequate to get things moving again. As a result, it is not surprising that the euro is being punished in forex trading as investors and others prefer currencies looking to stimulate economic growth.