The euro is losing ground to the dollar during early Wednesday trading, as the markets price-in the increasingly divergent economic prospects for the US and Europe. The success of the American vaccination program is starting to show a path back to normality, with a $1.9 trillion stimulus package promising an explosion in economic activity that is likely to drive up inflation. Meanwhile, in Europe the picture is fuzzier due to a suboptimal vaccine rollout, that has recently entered a new chapter with several EU countries suspending the use of the AstraZeneca vaccine. Apparently, these decisions were taken without any substantial scientific basis, and could further delay the vaccination of the European population, weighing down on the single currency’s prospects.
Ricardo Evangelista – Senior Analyst, ActivTrades