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1 May 2013
Forex Flash: Europe calm with ECB in line tomorrow - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that like Asia, much of Europe is closed today so there is little in focus in terms of economic data.
He notes that the PMIs will be released tomorrow ahead of the ECB meeting when we expect the ECB to cut the refinancing rate to 0.50%. London is open, with the PMI manufacturing report due but the remit letter for the BOE’s Financial Policy Committee, released yesterday, is getting the main attention this morning. He writes, “Once again, Chancellor Osbourne is trying to emphasise the growth aspect of the balance of the objectives within the remit. He urged the committee to be attentive to its secondary objective of sustaining economic growth “at this stage in the cycle”. This again will be of comfort to the incoming Governor, Mark Carney, who the markets expect to be more proactive in trying to lift economic growth.”
He notes that the PMIs will be released tomorrow ahead of the ECB meeting when we expect the ECB to cut the refinancing rate to 0.50%. London is open, with the PMI manufacturing report due but the remit letter for the BOE’s Financial Policy Committee, released yesterday, is getting the main attention this morning. He writes, “Once again, Chancellor Osbourne is trying to emphasise the growth aspect of the balance of the objectives within the remit. He urged the committee to be attentive to its secondary objective of sustaining economic growth “at this stage in the cycle”. This again will be of comfort to the incoming Governor, Mark Carney, who the markets expect to be more proactive in trying to lift economic growth.”