TD Research discusses its expectations for this week's ECB policy meeting on Thursday.
"We don't look for any new policy announcements at the October meeting. We do, however, expect the ECB to acknowledge the growing risks to the growth and inflation outlook on the back of rising Covid cases and regional lockdown measures. We look for Lagarde to leave the door wide open to augmenting the PEPP in December, which most analysts are now expecting," TD notes.
"With the US election coming hot on the heels of the October ECB meeting, we do not expect to see a significant directional move in EURUSD. We expect spot to remain anchored within familiar ranges through Nov 3 but for EURUSD to resume its grind higher after amid broader USD weakness if our base case is confirmed," TD adds.