FXStreet (Guatemala) – Analysts at Rabobank explained the key events ahead.
Key Quotes:
“Today we have the BoE’s rate decision, where no change from 0.50% is the obvious result. We also get the account of the ECB’s last meeting, which might be interesting given clear splits on where to go from here – and that was before the January meltdown began.
In Asia we also have a rate decision from Indonesia, where a 25bp rate cut to 7.25% is expected. Note that the Indonesian government is making the right kind of noises about reforms to FDI legislation to allow greater investor participation in previously restricted sectors. Indeed, IDR continues to look more like INR (i.e., stable) than MYR (i.e., very weak) recently, which is a real change for a traditionally volatile currency.
“Data-wise, we have US import prices (where we can expect further deflation due to the strong USD), initial jobless claims (not expected to edge up again at 275K), and the Fed’s Bullard speaking: will this mark one more voice of caution, or be something more gung-ho? And might we see US 10-year yields dip below 2% again for the first time since October if it’s the former? We are certainly trending in that direction again, it seems, suggesting something does indeed lie beneath. And it’s not a sustainable global recovery, I’d warrant.”
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