Today all analysts’ eyes are on Europe where the European Central Bank will be meeting in Frankfurt to discuss the future monetary policy of the bloc. This particular meeting is highly anticipated because in the past few weeks we have received numerous hints that the ECB might be considering another QE scheme to support the economy while fundamentals remain disappointing in the current global economic slowdown. ECB President Mario Draghi is set to give a press conference in the afternoon once the meeting is concluded. While it is possible that the central bank might not start with the stimulus package announcement this week, any strong clue from Draghi that the ECB is turning even more dovish than it already is will be enough for traders and will weaken the euro further.
Meanwhile, the United States-China trade negotiations have become one degree more complicated as the Chinese tech giant Huawei is now formally suing the United States, Previously in 2018 Donald Trump’s administration passed a law that made it illegal for Huawei to sell their products to government agencies in the US, citing security concerns (it was suspected that the Chinese government has access to the data that Huawei devices collect on their users). The trade talks between the US and China have been promising these past few weeks, but now with Huawei slapping a lawsuit in Trump’s face, it is uncertain whether the President will still consider signing an agreement with China.
