Can the Euro break 1.60?

Euro zone growth has exceeded the US contributing to the appreciation of the euro but after a closer look the EZ doesn’t look that healthy. Essentially Germany has pulled the Euro Zone forward for the past year while the PIGS otherwise known as Portugal, Italy, Greece, and Spain have stagnated or gone in recession. So to answer my own question, I seriously doubt the Euro will break 1.60 if Germany stagnates. The German current account was reported on Monday and it was slightly lower than expected at 14.5 billion instead of 14.7 billion expected. It is a small gap but the number that should alarm traders is the fact that the current account dropped by 3 billion from the previous month.

Does this point to a trend? Are high exchange rates hurting Germanys export lead growth? Perhaps and this will weigh on the ECB come June when they make their rate decision. The engine to European growth may be running out of gas, and the PIGS are not going to rescue Europe in the future sp we can look for a lot of range trading between 1.50 and 1.60.