The single currency regains the smile and lifts EUR/USD to the 1.1790 region at the end of the week. EUR/USD so far halts three consecutive daily pullbacks, including new 2021 lows in the 1.1760 (Thursday), and manages to advance to the vicinity of the 1.1800 zone on Friday. The likeliness of another wave of the coronavirus pandemic, further lockdown restrictions, and the poor pace of the vaccination campaign in Europe all collaborate in the selling pressure around the shared currency and the deterioration of the sentiment surrounding the pair for the time being.
EUR/USD remains under heavy pressure and breaks below the 1.1800 neighborhood to record new yearly lows, always amidst increasing upside pressure around the dollar. In fact, the persistent solid performance of the greenback has been undermining the constructive view in the pair in the past weeks, as market participants continue to adjust to higher US yields, the outperformance of the US economy (vs. its G10 peers), and the deterioration of the morale in Euroland.