Fed and ECB March decisions are already starting to cast a shadow – Commerzbank

By FXStreet The economic data due for publication next week will cause hardly any movement on the FX market according to Esther Reichelt, analyst at Commerzbank. “That said, monetary policy decisions by the Fed and ECB in March are already starting to cast a shadow. The darker the signs from the economy, the bigger the measures could be”.

Key Quotes

“The FX market has no time for a breather. While the oil price is bottoming out, which is supporting commodity currencies, and risk aversion has not increased any further at least, after Chinese markets have opened more quietly than feared after the New Year celebrations. But there can still be no question of a general easing of the situation on the FX market.”

“The focus is turning to the Fed and ECB monetary policy meetings in March. And it is regarded as certain that the ECB will loosen monetary policy further. How and to what extent depends on how much it corrects its growth and inflation projections downwards – and how the euro behaves.”

“The Purchasing Managers‘ Indices should show at the beginning of the week that the headwinds from the global economy have also strengthened in the euro zone. Up to now, the …read more

Source:: FX Street