• ECB’s Quaden: Rates can still fall
  • ECB’s Bini Smaghi: European integration must improve
  • Germany’s Merkel: Germany has done its part on stimulus, warns against pressure for more and more steps. Germany stands willing to help EU states.
  • UK budget deficit worst February on record. Public sector net borrowing (PSNB) 8.991 bln
  • Swiss ZEW investor sentiment -57.1 in March from 57.7 in February
  • Having managed to eek out some very marginal gains during the Asian session, the USD has come under renewed pressure after a cautious start in Europe. The Fed’s announcement it will buy $300 bln long-dated treasuries over the next six months, while boosting purchases of mortgage backed securities and agency debt, is still very much the driving forece in the market. The plan will see a sharp expansion of the Federal Reserve’s balance sheet and lead to a significant increase in the supply of dollars in circulation. USD sentiment is negative at the present time.
  • Sources report decent buy orders lined up in EUR/USD down at 1.3390/00.