20 Jan 2016
Central Banks take centre stage, BoC today and ECB tomorrow – Lloyds Bank
FXStreet (Delhi) – Research Team at Lloyds Bank, suggests that Central Banks are going to take centre stage with BoC lined up today and ECB tomorrow.
Key Quotes
“The BoC meet on Wednesday and despite Poloz’s recent rhetoric, there are growing expectations of a 25bp rate cut (OIS implied probability has increased from 33% to over 50% in recent sessions), after oil printed new lows around $28/bbl and the outlook for the Canadian economy continues to deteriorate. USDCAD is already trading near 13 year highs, and should the prevailing trends in oil and data continue, there is a real risk that the 1.50 level could be under threat.
The ECB discusses policy on Thursday – after disappointing the market at December’s meeting, no changes are expected here. EURUSD caught a bid tone toward the end of last week, but was well contained by technical resistance at 1.0985. On a break through here, 1.1010/40 region is good resistance (clusters of highs, 100/200dmas), while support should be found on a move back toward 1.0810/00.”
Key Quotes
“The BoC meet on Wednesday and despite Poloz’s recent rhetoric, there are growing expectations of a 25bp rate cut (OIS implied probability has increased from 33% to over 50% in recent sessions), after oil printed new lows around $28/bbl and the outlook for the Canadian economy continues to deteriorate. USDCAD is already trading near 13 year highs, and should the prevailing trends in oil and data continue, there is a real risk that the 1.50 level could be under threat.
The ECB discusses policy on Thursday – after disappointing the market at December’s meeting, no changes are expected here. EURUSD caught a bid tone toward the end of last week, but was well contained by technical resistance at 1.0985. On a break through here, 1.1010/40 region is good resistance (clusters of highs, 100/200dmas), while support should be found on a move back toward 1.0810/00.”