Barclays on markets market to front loading EURUSD strength

Barclays with a quickie look ahead to the wee and the euro

• The synchronized global recovery, led by the G3, has built expectations of policy normalization by core central banks. Some frontloading of ECB action has supported the EUR, while pronounced JPY outperformance should come in H2 18, in our view.

On the ECB and BOJ meetings this week:

• We expect the ECB and BOJ to emphasize policy continuity
• The market will be looking for hints of upcoming forward guidance changes by the ECB, but the central bank is unlikely to provide further fuel to hawkish expectations for now.