Forex Flash: Sentiment steady ahead of ECB decision Thursday – UBS

Forex Flash: Sentiment steady ahead of ECB decision Thursday â€" UBS

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Forex Flash: Sentiment steady ahead of ECB decision Thursday UBS

FITITOL--> FXstreet.com (Barcelona) - The RBA kept the cash rate steady at 3.5% overnight in line with consensus, noting that "material easing" had already been delivered by earlier cuts. Meanwhile, Ireland announced that it has returned to the primary market for the first time since September 2010, which is a symbolic step in efforts to contain the Eurozone crisis.

Nevertheless, the focus within markets has clearly shifted towards growth and the potential policy response from both governments and central banks. Clearly this week the emphasis is on the latter with the ECB and BoE making key decisions. According to Geoffrey Yu, a research analyst at UBS, “The ECB is under pressure to react to worsening output and employment numbers, however the central bank would not want to be seen as rewarding government actions, since last week's decision really delivered little of substance.”