EUR / USD pushes lower, hits new one-month lows at 1.1650

• EUR / USD falls to a new one-month low at 1.1650
• The euro is submerged by the ECB’s dovish rhetoric and COVID-19 lockdowns.

The euro has extended its four-day downtrend against the US dollar on Thursday, extending its slide from last week’s highs at 1.1875 below 1.1700 to hit new October lows at 0.1650 so far.

Euro suffers from moderate ECB lockdowns and COVID-19

The European Central Bank pushed the euro down early Thursday after suggesting the introduction of new monetary stimulus measures in December.

The president of the ECB, Lagarde, assured, after the conclusion of the last monetary policy meeting, that policy makers are ready to “recalibrate” their tools in December. This has been taken by the market as a sign that the Bank is ready to provide additional support to the worst economies affected by the coronavirus.

Aside from that, the growing number of COVID-19 infections in Europe and new lockdowns introduced in Germany and France, with Spain closing regional borders, have increased investor concern about the impact of these measures on the incipient economic recovery. .

EUR / USD, weaker after moderate ECB turn – TD Securities

On the technical level, TD Securities’ currency analysis team sees the euro leaning lower, although a new catalyst will be needed to extend the decline below 1.1600: “EUR / USD is more weak after moderate ECB turnaround this month, but selling pressure continues. From here on, we believe investor attention will migrate quickly to end-of-month considerations and next week’s US elections. We see some risks Further downside for short term spot as the market still appears short USD overall. We believe further catalysts would be needed to see clear momentum towards a new trading range below 1.16 ahead of the vote. ”