- EUR/USD is steady for no apparent reason.
- A dovish ECB, surging covid cases in the rising eurozone and US election uncertainty could drag on the pair.
- Thursday’s four-hour chart looks bearish.
Analysts widely believe that the ECB will leave policy unchanged. However events are moving quickly. Both Germany and France announced month-long nationwide lockdowns to stem the surge in coronavirus cases. The announcements from Berlin and Paris dragged on the common currency and could encourage the ECB to act as well.
An interest rate cut from the ECB is unlikely given that rates are already at -0.50%. The central bank could expand the Pandemic Emergency Purchase Program (PEPP) and accelerate the pace of bond-buying.
The ECB could signal towards more action in December when the ECB publishes new projections. Still the deteriorating outlook is expected to be reflected inThursday’s decision and could drag on the euro.
The US elections also add a heavy dose of uncertainty. National polls continue to show Democrat Joe Biden leading over President Trump, but the races are close in key swing states such as Florida– and North Carolina, where a critical Senate race is tight.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.