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Following last week’s BoC policy decision, this week the central bank torch is passed to the ECB and the BoJ. We don’t expect any changes in language around policy from either Bank, so all the attention is likely to fall at the press conferences following the decisions. The UK and US preliminary GDP data for Q1 are likely to be in focus as well.

Yesterday, the wounded pound got another strong hit after Governor Carney’s dovish remarks raised some doubts as to whether the Bank will indeed push the hike button at its upcoming gathering. As for today, following the disappointment from the BoC meeting on Wednesday, Loonie traders turn their attention to Canada’s CPI data for March.

Yesterday, the Loonie came under selling pressure after the BoC disappointed those expecting that officials would lay the ground for a rate increase at one of the Bank’s upcoming gatherings. The pound dropped as well after both the headline and core CPI rates for March unexpectedly fell.

Today, the Bank of Canada decides on interest rates. No change in policy is anticipated, but we see the likelihood for the Bank to sound somewhat more upbeat compared to its last meeting. In the UK, after yesterday’s employment report, CPI data for March will keep pound traders busy.

Yesterday, the US dollar came under selling interest after US President Donald Trump accused Russia and China for currency devaluation. In Australia, the RBA minutes were out, but as we expected, the Aussie did not respond. As for today, the highlight is likely to be the UK jobs report for February, as investors try to assess the likelihood for a May hike by the BoE.

We enter a relatively busy week in terms of economic events and data releases. In Canada, the nation’s central bank gathers to decide on interest rates. No change in policy is anticipated, but we expect the Bank to adopt a more optimistic narrative this time. In the UK, jobs and inflation data will be closely watched as investors try to assess the likelihood for a BoE hike in May. We get inflation data from Japan, Canada and New Zealand as well.

Yesterday, global risk sentiment switched back to “risk on” as fears over an imminent military action in Syria have receded. Safe haven currencies came under selling pressure, as the riskier ones gained investors interest. Global stock indices ended in the green as well. The euro tumbled yesterday as the ECB minutes revealed concerns over the exchange rate.

Yesterday, the minutes from the latest FOMC meeting revealed that all policymakers agreed that the economic outlook has strengthened, and that they expect inflation to rise in coming months. As for today, investors will turn their attention to the ECB minutes in order to get more clues on how strong the likelihood for a QE end this year is.

Today, investors will lock their gaze on the US CPIs and the Fed Meeting minutes in order to assess whether the Committee is likely to revise up 2018 “dots” in June. Yesterday, the euro spiked up following comments from ECB Governing Council Ewald Nowotny.

Risk sentiment recovered somewhat yesterday, following remarks by several US officials that calmed anxiety over the prospect of a trade war. Overnight, China’s President Xi Jinping boosted risk appetite further. In Canada, the upbeat BoC Business Outlook Survey fueled further the Loonie rally.

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