The Euro to US Dollar (EUR/USD) exchange rate is struggling during today’s session.
A combination of lacklustre data from the Eurozone and delayed vaccine rollout across the bloc has done nothing to support EUR.
At the time of writing the EUR/USD pairing are currently trading at around $1.1733 as the US Dollar is supported by a perceived faster economic recovery from coronavirus in the US.
Euro (EUR) Lower as Delayed Vaccine Rollout across Europe Continues
The Euro is struggling against many of its biggest rivals today as the delayed rollout of the coronavirus vaccine across the Eurozone continues to pull down the currency.
Delays and suspensions of vaccines have plagued the bloc since any sort of rollout began, and as members of the public lose faith in the vaccines and their governments it seems to only get worse for the Eurozone.
Spain’s coronavirus infection rate rose over the weekend, with 15,500 cases added to active cases.
In addition, France has recorded the highest number of people in ICU with Covid-19 since the second lockdown in November.
The Euro has further fallen despite preliminary inflation data from Germany released this morning.
German inflation rose to 1.7% in March, the highest level since February 2021 in line with expectation.
Eurozone consumer confidence hit a one-year high for March, however, it remains low compared to pre-pandemic levels and with the third wave of the coronavirus plaguing the bloc its thought consumer confidence will fall further heading into April.
US Dollar (USD) Supported by Positive Economic Recovery Outlook
The US Dollar is pushing higher against the Euro today as President Joe Biden announces that 90% of American adults will be eligible for a coronavirus vaccine from the 19th April.
Speaking from the White House after a briefing from his coronavirus team, Joe Biden said:
‘We’re going to send more aid to states to expand the opening of more community vaccination sites, more vaccines, more sites, more vaccinators, all designed to speed our critical work.’
‘We still are in a war with this deadly virus, and we’re bolstering our defence, but this war is far from won.’
Bond yields hit a 14 month high of 1.77% after the announcement as optimism over economic recovery rose, Reuters reported that:
‘The latest U.S. bond selloff was driven by news on Monday that those aged 30 and older would now be eligible for coronavirus vaccinations and expectations that President Joe Biden’s infrastructure initiative, with a potential $3 trillion price tag, could further lift economic growth and debt issuance.’
EUR/USD Exchange Rate Outlook: Eurozone Inflation in Focus
For Euro investors, tomorrow sees the release of flash core inflation data from the Eurozone which is expected to remain at 1.1% for March.
The muted inflation rate could add further pressure to EUR as the Eurozone battles against the third wave of the coronavirus pandemic.
For US Dollar traders, Thursday will see the release of initial jobless claims for the week ending 27th March.
US jobless claims are forecast to have fallen to 34k last week.
The fall would add additional support to the US Dollar and cause investors to remain optimistic over the US’s economic recovery.