eFXdata reports that Danske Research discusses its expectations for ECB meeting.

"At the ECB policy meeting, we do not expect any new measures to be announced. However, with the COVID-19 spreading increasing, we expect the ECB to send its usual dovish signals, which could raise further market expectations for a December decision to increase/extend PEPP due to its open interpretation of the language. Our baseline is for the ECB to signal a readiness to act subject to incoming data in the coming 6 weeks and not a pre-commitment to expand already next week," Danske notes.

"We expect Lagarde to be questioned on the economic and inflation uncertainty and upcoming December staff projections, the content of the toolbox, effectiveness of the tools the divergence of views in the governing council," Danske adds.