Goldman with the note. A marginal negative for EUR and therefore AUD.
Although economic activity is rebounding strongly across Europe in light of the ongoing reopening, there are rising concerns around the spread of the more transmissive ‘delta’ variant of COVID-19. While new infections continue to decline in the Euro area as a whole, a number of European countries—including the UK, Portugal and Russia—have seen a renewed rise in new cases (Exhibit1). In today’s Daily,we analyse the Covid situation and the rationale behind our view that the delta variant poses a manageable risk to our constructive view on Europe.
…First, the decline in R of the original strain (greyline) during the spring of 2020 was almost solely driven by strict lockdown measures (along with modest effects due to warmer weather).
