The European Central Bank, which is trying hard to keep the recovery on track, is facing major obstacles from the rising Euro. 

As of now, it is the currency and not the interest rates that dominate concerns regarding the durability of the 16-country Eurozone's recovery.  On Thursday, when the ECB's policy board is scheduled to have its meeting, it might not change interest rates or its less-conventional monetary-policy measures, which include bond purchases.

In fact, the concentration of the financial markets is on the euro exchange rate -- which the ECB is unlikely to do anything about. The issue of concern for Euro-zone policy makers is that the Euro's strength will hit hard the ECB's best effort to fine-tune the shift from an expansive to a tighter, more anti-inflationary policy of higher interest rates and less liquidity. 

Since February, the Euro has gained nearly 8% against a basket of major trading partners' currencies, and much of that gain has been in the past month. The currency is shifting towards a latest new high for the year offsetting the ECB's efforts to make life easier for European businesses.

As of now, the first concern is to protect recovery and putting a hold on inflation is being seen as a longer-term problem.
 
Jörg Decressin, head of the International Monetary Fund's department for global economic studies feels, "The ECB can, as far as we can see over the next year, maintain a very accommodative monetary policy."