The Euro consolidates losses from its last week recovery moves and heads into today European Session. Because of the sluggish market the pair failed to control sellers as a new fear of inflation and the corona virus (COVID-19) favored demand for the US dollar, due to its risk-protection faint.
The European economy just flopped into a double-dip recession, but it already seems to be bouncing back and could even start outpacing the U.S. which is like providing another engine for global growth. The reason’s for optimism are economies are reopening, the delivery of vaccinations are finally accelerating and the European Union’s multi-year joint stimulus fund is set to take off to complement already ultra-loose monetary policy.
US Core Personal Consumption Expenditures (PCE) Price Index, published Friday, seems to be the main catalyst behind the greenback’s recovery moves. The Fed’s preferred gauge of Inflation jumped to the highest in the near three decades with 3.4% YoY figures in May and probed the Fed’s sustained repeated efforts to tame inflation fears and chatters over rate hikes, as well as tapering.
On the other hand Germany will attempt to ban British travellers from the European Union regardless of whether or not they have had a COVID-19 vaccine, The Times reported on Monday. The German chancellor wants to designate Britain as a “country of concern” because the Delta variant of the coronavirus is so widespread, the newspaper said. The plans will be discussed by senior European and national officials on the EU’s integrated political crisis response committee and will be resisted by Greece, Spain, Cyprus, Malta and Portugal, the newspaper added.
German chancellor Angela Merkel is due to meet British Prime Minister Boris Johnson at Chequers next week. Britain plans to unveil plans next month to allow fully vaccinated people to travel unrestricted to all countries except those with the highest COVID-19 risk.
EUR/USD 4 Hour Chart:
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