It's increasingly clear that Italy is in a new virus wave
Cases near the highs of the year
Italy reported 24,036 new virus cases today. Aside from the January 5 report (which was really two days in one), this is the highest reading since December 4.
Italy has vaccinated 1.5m people in a population of 60m and just 212K in the past 14 days. The rise in cases helps to explain why vaccines destined for Australia were confiscated this week.
These rising numbers will be a drag on the euro and raise the odds that the ECB will act at the upcoming meeting. They're also a small headwind for global commodity demand.