ECB forced to deliver – UBS

By FXStreet The ECB meeting on March 10 kicks off the monthly round of central bank meetings. Among other major central banks that will decide on policy over the next days, the UBS team believes the ECB is the one with the most urgent need to deliver some sort of additional easing. Against this backdrop, UBS expects the euro to fall rather than rise after the ECB meeting, probably to the lower end of the 1.05-1.10 range.

Key Quotes

“The other two G3 central bank meetings will follow, with the Bank of Japan on March 15 and the US Federal Reserve on March 16. Other major central banks outlining their monetary policy decisions this month are the Bank of Canada (March 9 ), the Bank of England, the Swiss National Bank and the Norges Bank (all on March 17).”

“Among all of these central banks, we think the ECB is the one with the most urgent need to deliver some sort of additional easing. The pressure is rising on several fronts. First of all, running inflation remains in negative territory. The expected rise in inflation has yet to materialize, which must be a disappointment for the ECB council and ECB staff. They will be providing …read more

Source:: FX Street