The Euro suffered yesterday as the COVID-19 situation is Western Europe is becoming increasingly worse. In its weekly report on the Pandemic issued only yesterday, The World Health Organization showed that cases worldwide “jumped 6% globally”, but that “Europe was the only region in the world where COVID-related deaths increased last week after a rise of 5%”. The report also indicated that of the 3.3M new infections reported, 2.1M came from Europe alone. Within Europe, WHO confirmed that the highest numbers of new cases “were in Russia, Germany and the United Kingdom”. As a result of rising COVID-19 cases, Austria has put “tight restrictions on the movement of unvaccinated people”, where as the “Netherlands and some other European countries reintroduced lockdown measures”. Moving forward, the Euro could come under even further selling pressures. If the ECB continue to stay “dovish despite the inflation surge” and rising COVID-19 cases, this would be huge hindrance on the Euro.
EURUSD had a tough session once again yesterday. The pair opened the day at 1.1317 and closed not far off at 1.1322. After it’s rapid decline on Monday evening sending the pair to the 1.13 range, EURUSD has struggled to gain momentum and will likely continue to do so.
Sterling was also able to make advances against the Euro on Tuesday. GBPEUR started the session at 1.1884 and climbed above the 1.19 handle at the close, finishing the day at 1.1912.
Cable also had a positive day yesterday, closing above where it opened. GBPUSD opened at 1.3449 and closed at 1.3487.
The data focus today will be the US weekly Labour report. Following this release at 13:30 Fed members John Williams, Charles L. Evans, and Mary C. Daly. Atlanta Fed President Raphael Bostic will also be speaking today.