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Bad news in Continental Europe has triggered a broad reassessment of the global Covid situation and it is not good with both new cases and deaths on the rise (see the Graph of the Day). Successful vaccination campaigns in the US, the UK and Israel cannot hide the fact that a new wave is spreading and will further delay the comeback to normal. US bond yields are down (prices up) and the USD is stronger which reflects return to caution on financial markets. The EUR/USD fell to a new 2021 low, below 1.1850.
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