Markets turn attention to Central bank meetings later this week
Currencies Direct March 14th 2016 - < 1 minute read
After last week’s European Central Bank (ECB) measures, this week the markets will turn their attention to the Bank of Japan on Tuesday, the US Federal Reserve on Wednesday and the Bank of England on Thursday. Shares across Asia and Europe seem to hint that investors are in good spirits ahead of all these central banks meetings. On Wednesday, the market doesn’t expect the FED to take any major action despite the labour market and inflation reports running marginally stronger than the Fed had previously anticipated.
The global economic outlook is still uncertain and therefore the market will closely look at the post-meeting press conference and see if any forward guidance will be provided. The FED should go into this meeting with a sense of relief thanks to the recent positive economic reports and the aggressive measures announced by the ECB.
Light day in terms of data
It will be very light in terms of data today with only Eurozone factory output due for release today. The data just out this morning showed that factories have reported a surprisingly strong increase in factory output. Industrial production across the Eurozone surged by 2.1% month-on-month in January which means that the growth rate is 2.8% higher than a year ago.