Sentiment is improving, evidence the surge in Asian stocks overnight. This is benefitting the likes of sterling, aussie and the canadian dollar, while the greenback and yen give ground. The euro, which one would expect to firm in this environment, is lagging the move somewhat.
The proximity of todays ECB meet is an inhibiting factor where euro gains are concerned. The market generally expects a 50 bps cut in rates, but worries the ECB could be more aggressive and go for 75 bps, and mayb e even signal a move to quantitative ease.
The other big even today is the G20. We’ve already had a draft communique circulate, but the market will be eager to see what comes out of the days deliberations. One has to hope things go smoothly and help underpin the renewed optimism.
For today there is very little in the way of ecnomomic data releases;
08:00 GMT: Italian deficit to GDP (ytd) (Q-4)
08:30 GMT: UK PMI construction (Mar) expected 27.8
11:45 GMT: ECB rate decision expected to trim rates 50 bps.
