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:

Invest in yourself. See our forex education hub.

Articles You May Like

Secret ICT Silver Bullet Trading Strategy That Works! (Easy Hack)
Forexlive Americas FX news wrap: USD/JPY regains ground in holiday-thinned trade
Nvidia shares spike 26% on huge forecast beat driven by A.I. chip demand
Inflation rose 0.4% in April and 4.7% from a year ago, according to key gauge for the Fed
Dollar Soars after FOMC Minutes and Fed Comments