Intra-Day Market Moving News and Views
05 Mar 2015 01:41GMT
EUR/USD - ..... Euro languishes near Wednesday's fresh 11-year trough of 1.1061 in subdued Asian morning as traders sold the single currency ahead of today's ECB monetary meeting.
Reuters reported keen to keep a low profile over the Greek crisis, the ECB will focus on improved growth prospects when it meets today and unveil some but not all the details of its 1 tln euros-plus bond buying plan.
Meeting in Cyprus, the ECB will keep rates on hold, likely lift growth forecasts to reflect a string of positive data surprises but cut inflation projections as it incorporates the full effect of a dramatic oil price fall, backing its case to buy 60 bln euros worth of bonds a month from March to spur inflation.
Markets will be looking for how quantitative easing will work, when the buying will start, whether it applies to paper with negative yields and how the purchases will be distributed along the yield curve.
Anticipation of the QE programme has driven euro zone borrowing costs down to the point where Spain can borrow for 10 years at just 1.3% and investors actually pay for the privilege of lending to Germany for 5 years.
Yields in Italy, Spain and Portugal dropped to record lows this week.
Data to be released on Thursday:
Australia exports, imports, trade balance, retail sales, France unemployment rate, Germany industrial orders, Italy GDP, UK BoE rate decision, EU ECB rate decision, Canada Ivey PMI and U.S. jobless claims and factory orders.
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