Last Thursday’s drop in EUR/USD below 1.20 for the first time since December 1, 2020 was highly significant not just technically but also psychologically. It provided a stark reminder to traders that the Eurozone is lagging far behind the US (and the UK) in vaccinating its citizens against coronavirus and that any economic recovery will therefore likely lag behind too. {chart} In recent months, the US Dollar has become the markets’ favorite safe haven but when the global economic recovery arrives it could well prove to be the leader on the way up too. As mentioned earlier, traders are confident that the currencies of ... (full story)