The Euro continues to weaken in relation to its peers during early Thursday trading as investors position themselves ahead of today’s European Central Bank meeting. The coronavirus is once again dominating headlines with the second wave of the pandemic advancing across Europe, forcing Germany and France – the continent’s two largest economies – to announce new national lockdowns. Taking into account the likely negative impact these winter lockdowns will have in an already weakened eurozone economy, many in the markets believe that later today the ECB will announce additional stimulus measures and increase the cautious emphasis of its forward guidance. Should such predictions materialise, we can expect further short-term single currency weakness.
