1️⃣ USD continued to consolidate strength, EU fell deeply into crisis
The dollar edged higher at the start of the European session on Thursday, climbing to a four-month high against the euro as the third Covid wave and slow vaccine rollout in Europe weighed on the common currency. .
- Some European countries, such as Germany, France and Italy, recently extended their travel restrictions when a pandemic reappeared. The French government is also ready to take stricter measures if the current measures are not enough to prevent spread.
On Wednesday, US Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell expressed confidence in the recovery of the US economy on Monday before the House of Representatives. The confidence surrounding the US economic recovery is in contrast to most developed and developing countries that are already struggling to reopen their economies.
2️⃣ Germany is trying to deal with the vaccine crisis in the EU
Chancellor Angela Merkel on Thursday defended the government's decision to buy the coronavirus vaccine alongside other European Union member states, commenting that otherwise, the bloc's alignment would be shaken.
She told German lawmakers ahead of the EU summit: “Despite all the complaints, the overall EU vaccine acquisition and approval is correct. Now that we see small differences in vaccine distribution that have also caused huge debates, I don't want to imagine the prospect of some member states having vaccines while others. not. It will threaten EU cohesion. ”
3️⃣ Policy information from Central Bank of Switzerland
- The Swiss National Bank has kept interest rates at a record low of -0.75% and committed to continue the foreign exchange intervention policy while the economy remains vulnerable to pandemic.
- Although the CHF's drop to a 20-month low against the euro in recent weeks has helped SNB officials "relax", inflationary pressure remains weak and the implementation of the Covid-19 vaccination is delayed. are affecting economic activities.
- The SNB has denied the allegation that the small size of the domestic bond market makes interventions the most effective tool for curbing the strength of the CHF and preventing deflation.
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