Forex Flash: Markets’ focus to shift towards CBs decisions

Forex Flash: Markets’ focus to shift towards CBs decisions

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Forex Flash: Markets focus to shift towards CBs decisions - BNZ

FITITOL--> FXstreet.com (Barcelona) - ‘Safe-haven’ USD and JPY saw demand returning on Monday, following chatter that Finland and the Netherlands may oppose to secondary bond purchases by the ESM. This negative headline ensured the poor performance of the Euro.

Looking ahead, currency analyst for Bank of New Zealand, Mike Jones, suspect markets’ focus will begin to shift to what central banks can do to support the global economy.

Mr. Jones notes: "While the RBA should stay on hold today, further easing is expected from the Bank of England and ECB later in the week. Moreover, any weakness in Friday’s US non-farm payrolls may well be seen as a green light for more quantitative easing from the Federal Reserve."

As a result, Mike expect broader risk sentiment to hold up in the short-term: "Support on the EUR/USD at 1.2445 should hold, with near-term support eyed at 1.2575" he says.