Coming up: a week of Central Banks - ANZ

Analysts at ANZ bank explained that as we head into a week of central bank meetings, secondary data is playing a secondary role in global markets. Expectations are growing that as a result of the JPY’s strength the Bank of Japan may ease policy again next week.

Key Quotes:

"The ECB is not expected to do anything because it eased last month, but there will be a careful eye on the tone of Draghi’s press conference and whether or not any reference is made to the recent strength of the EUR vs USD. Of course, the ability of the two central banks to make a significant dent in their respective currencies, whatever they do or say, is being severely questioned."

"Meanwhile, it would of course be a shock if the FOMC were to do anything but talk next week, but the tone of the statement will be closely scrutinised for any signs of a more balanced assessment of the international environment (which has improved)."

"That said, US data has been mixed. If the FOMC has an intention of raising rates in June, there would need to be a firming in the April statement’s language. The market’s response to that would be a real test of the robustness of the much more optimistic sentiment seen of late."