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: