EUR/USD easing covid measure
The EUR/USD pair ended May with significant gains, and after a minor correction, there is room for growth as the eurozone reopens; a potential US reversal and bullish tables can help the dollar lower the pair a bit.
As June begins, Italy is taking another step in its reopening. The locomotive of the German continent is also considering removing the controversial lock law, allowing more freedom as coronavirus cases fall sharply. A minimum of 40% of the population of the old continent received one vaccine sting, and the campaign brings positive signs.
To restore free movement within the EU, enter into force on 1 July, today seven member states – Bulgaria, the Czech Republic, Denmark, Germany, Greece, Croatia, and Poland – have decided to connect to the system and start issuing the first EU certificates.
Brussels is announcing the start of negotiations with third countries on the mutual recognition of digital vaccination certificates to make travel easier for citizens this summer.
The European Commission recommends that until reaching an agreement on mutual recognition of the certificate, the member states accept valid documents on vaccination of third-country nationals. Germany’s harmonized inflation has exceeded the European Central Bank’s goal of being “below, but close to 2 percent” in May, fast Destatis data showed on Monday. As core inflation rises, the ECB’s attempt to avoid talks with narrowing will become increasingly complicated, said Carsten Brzeski, an ING economist.
However, German headline inflation could eventually range between 3 and 4 percent in the second half of this year. As the temporary effects are largely responsible for higher inflation, significantly lower inflation rates can be expected again next year, said Marco Wagner, an economist at Commerzbank.
Overall, the inflation rate should average 2.5 percent in 2021 but fall to 2 percent next year.
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