Through the Monetary Occasions a key threat for a continued euro rally, a double-dip recession introduced on by the 2nd wave of COVID-19 infections gaining tempo throughout the continent.
Germany, France, UK, Italy, Spain, Netherlands have all introduced in new restrictions to counter the 2nd wave development
- Additional restrictions are anticipated to be introduced this week.
“I can’t consider how briskly the second wave has hit,” mentioned Katharina Utermöhl, senior economist at Allianz. “We now see development turning unfavorable in a number of nations within the fourth quarter — one other recession is completely attainable.”
Europe is already wanting worse on financial information indications, positioning can be a weight on EUR/USD.