Forex Flash: G/ lower ahead of Central Bank meets – OCBC Bank

Emmanuel Ng of OCBC Bank notes that G7 currencies are lower against the dollar ahead of the ECB and BoE meets this morning.

He feels that profit taking has pulled EUR/USD lower while the AUD and the NZD led the way lower across the board. As noted previously, Ng comments that markets will be on the lookout for comments from the ECB’s Draghi today. Apart from the prognosis on the macro/financial conditions outlook, any references to the EUR’s valuation are also likely to prove eventful for the common currency. On our end, he write, “we do not expect the ECB to express undue discomfort with the EUR’s recent movements and if this plays out as expected, the common currency may potentially seek out higher ground in the near term.”