The EUR/USD pair was closed at 1.1764 after placing a high of 1.1829 and a low of 1.1761. EUR/USD pair extended its losses and dropped for the third consecutive session on Thursday amid the strength of the US dollar and the rising tensions in the European Union related to the third wave of coronavirus.

The growing concerns over the European Union’s third wave of coronavirus sent the single currency Euro on the downside against its rival greenback. The lockdown restrictions that should have been lifted by now were extended amid the third-wave concerns, and this has seriously raised concerns about the bloc’s economic recovery. The weak Euro failed to support the EUR/USD pair that continued falling and reached below 1.1770 level.

The single currency’s weakness was added after the concerns even raised due to the sluggish vaccination campaigns in the bloc. This led to the rising tensions between the EU and UK as the EU has planned to block the vaccine export shipments to the UK; this would add more pressure on the single currency and could take EUR/USD pair further on the downside.

On Thursday, the Italian Prime Minister Mario Draghi urged the European Union leaders to use the bloc’s new powers to ensure vaccine supply. The EU leaders assessed the new controversial proposal that will allow the EU to block the vaccine exports from the companies that have not yet met their EU commitments. These developments could only add downside pressure on Euro as it could harm the bloc relationship with other countries like the UK.