EUR/GBP and The second wave of COVID-19 infections

EUR/GBP consolidation to the trend line. Investors remain concerned that imposing new restrictions on combating the second wave of COVID-19 infections could cause a slow global economic recovery.
The federal government of Germany and the federal provinces’ governments have agreed on the introduction of new restrictions that will apply throughout Germany, said German Chancellor Angela Merkel at a press conference after a meeting with the prime ministers of the federal provinces. With this, responsible politicians want to stop the drastic increase in the number of people infected with the coronavirus.
The massive restrictions of everyday life come into force on Monday, November 2, and will be valid until the end of November. The goal is to reduce the number of new infections by Christmas while keeping the economy functioning and keeping schools and kindergartens open. Companies are required to allow work from home wherever possible.
It was agreed to elaborate on a financial assistance plan for those who lose income due to these new measures. It was said that the volume of that help would be up to 10 billion euros and that the salary will be compensated in the amount of 75 percent from the one last year. This applies to small firms, ranging from individuals who only employ themselves to firms with up to 50 employees.
Today, from Europe’s news, we have the most important German report on the number of unemployed, which is positive from the forecast. It does not have any impact on the euro due to the coronavirus.
Later in the day, we have news from the European central bank on interest rates, which will remain at the same level by all forecasts. It is crucial to follow the European Central Bank’s officials’ future moves to help countries and companies overcome this crisis.