The EUR/USD currency pair faces some difficult challenges for several days ahead. The result of the European Central Bank or ECB last week failed to give enough support for Euro. Meanwhile, the FOMC meeting this week is probably supporting the USD rally.

The effort for the economic activity normalization in Europe also faces a new obstacle. That is related to the suspension of the COVID-19 vaccine made by the AstraZeneca – Oxford University. This vaccine is highlighted right now because of a reason.

Lately, many mass media talked about the side effect issue of this AstraZeneca vaccine. It is known that this product has the effectiveness of 80 percent to handle the COVID-19 infection. However, it is thought to cause a blood clot for the receiver.

AstraZeneca Objecting that Issue

The AstraZeneca party together with the European Medicines Agency and Public Health England said that the issue is not right. However, some countries decide to do a suspension for its distribution. Safety or public health security is their main reason for that action.

Those countries are Germany, Holland, France, Ireland, Denmark, Bulgarian, Norwegian, and Icelandic. The public must know that the AstraZeneca Vaccine has not received approval from the United States authority. That country uses other products so far.

It is known that the USA does the vaccination programs by using products from Pfizer – BioNTech, Johnson & johnson, and Moderna. These three coronavirus vaccines have been approved by their authority. The suspension will bring some consequences.

The suspended vaccines will bring a consequence due to the vaccine acceleration effort. That may make the investors backtracking on the time and reach of the eurozone economic recovery. In a long-term period, the US is now more interesting, so it creates a sign of EUR/USD decline.

The FOMC Release Will Affect the Movement

Elsewhere, the FOMC release and obligation market turmoil this week will affect the movement of EUR/USD. MUFG predicted that the obligation yield of the 10-year US treasury will note its highest record again. That can be good news for a Dollar in the market.

If that thing happened, Dollar has a chance to be stronger versus other currencies with a lower yield such as the Yen, EUR, CHF, and SEK. On Tuesday, the Australian Central Bank published the meeting minutes for the March period. There is an important point there.

They still maintain a positive outlook on the prospect of domestic and global economic recovery. The RBA parties highlighted the successful vaccination process which is done in several countries. However, they are worried about some obstacles that may be happened in the future.

One of them is the vaccine distribution in the developed countries. The RBA policymaker noted that the global economy will get the recovery momentum again in several next few months. Before, it was slowing down because of the new virus variant found in some places.

The Economic Recovery Has a Long Road

The hope is always there, but the recovery further still shows the difficult and long road. The RBA party highlighted the increase in commodity prices which happened several days later. It is caused by the increase in demand from China and other Asian countries.

The price growth of global commodities is also supported by the stimulus in some countries. That stimulus is given to push the economic activity. Furthermore, the policymakers agree that the Australian employment market is getting better now.

They are now only less than 0.5 percent under the pre-pandemic level. That recovery cannot be separated from the expansive RBA support. However, the growth of salary is still quite low. It is still at the level of 1.4 percent yearly until the IV quarter in 2020.