EUR softness – slow vaccine rollout, renewed virus wave, renewed restrictions, US outpacing cited once again

News

Reuters conveying some commentary from National Australia Bank on the euro today:

  • The weak point in Europe remains around the vaccine rollout amid the rise in new virus cases and the tightening of restrictions … which likely means the mooted acceleration in Q2 may have to be pushed back by a quarter
  • The narrative of the U.S. outperforming Europe in the coming quarter remains

And adding a little more, this from Commonwealth Bank of Australia on the concern over the latest wave of infections being largely driven by the U.K. strain: 

  • The risk is that the more contagious and deadly strain of the virus elicits a stronger response from European governments, which sees Europe remaining locked down for longer
  • A significant delay to Europe’s re‑opening efforts will only widen the divergence between the economic outlook in Europe and the U.S.

Add all this together and the pressure for a lower EUR remains. Its languishing just off its recent lows in Asia morning trade:

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