Geopolitics in focus ahead of central banks
What happened overnight
– Turkish military retaliate to Syrian shelling of border town
– We expect the ECB and BoJ to keep policies unchanged today
– BoE leaves rates and asset purchases unchanged
– Watch FOMC minutes for any guidance of easing criteria
Markets were in rangebound mode ahead of ECB, BoE and BoJ decisions, with equities trading in tight ranges and most currencies reporting small losses against the EUR. The South African rand was the main underperformer, burdened by the news of an illegal strike shutting down operations in the automotive sector. HUF and SEK are the top performers of the day, and EURUSD is 0.3% higher on the day at 1.2945. AUDUSD is flat at 1.0219, in line with USDJPY at 78.56.
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