The ECB is concerned about the rising euro as they try to stoke economic growth in the eurozone after lockdowns, which were meant to slow the spread of COVID-19 in Europe. The euro’s current strengthening is expected to trigger another cut in the central bank’s inflation forecast, lowering the ECB’s target, which is now just under 2 percent.
However, the ECB plays second fiddle to the all-powerful Federal Reserve, which is trying desperately to reignite the world’s largest economy which has also been hammered by coronavirus lockdowns, via aggressive stimulus measures, upending the Fed’s decades-long inflation policy, and in the process deliberately weakening the US dollar.