The European Central Bank has noted that recovery is progressing at different speeds throughout the eurozone, making it more complicated for the ECB to create economic policy. Following the return to growth of France and Germany, Europe's two major economies, in the second quarter, many countries are still struggling with high unemployment and falling inflation rates. After raising growth forecasts yesterday, the European Commission also cut growth rates for Spain and Ireland.

This is prompting speculation that the ECB will have to tighten fiscal policy before countries like Spain and Ireland are ready, making their recovery from recession more difficult. Spain and Ireland are due to contract 0.9% and 1.5% respectively in 2010 according to the OECD, while France and Germany are expected to grow by 0.2%.

Exchange rates for the euro are currently trading at USD1.4604 and GBP0.8867 ahead of the release of US retail sales figures.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.