“Europe might be about a year behind the U.S. in terms of a full recovery” Joe Manimbo

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The Dollar witnessed two months rose against than Euro on Tuesday that give glimpses of the U.S. being rebound sooner than Europe from coronavirus pandemic. The extended lockdown in Europe seems to be one of the reasons for the downfall of the Euro. Also, moves in Washington toward more stimulus spending are the reason behind the decline in the Eurozone GDP in the first three months of the current year.

Against the dollar, the euro was trading at $1.202 in the afternoon in New York afternoon, down almost to an early December low, and off 0.32% for the day as well as down 1.61% for the year.

“Growth differentials are taking a toll on the euro and adding to the traction that we’ve seen for the U.S. currency this year,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.

“Europe might be about a year behind the U.S. in terms of a full recovery,” he said.

“Things are looking even more depressing here,” Commerzbank strategists said in a daily note.