First two days of this week have not included much data, even if we have seen some volatility on the markets its mainly from reactions from earnings reports last week. We can see that liquidity is filling stock markets across the world that has been the general factor for minor movements on currency pairs.
If we look ahead for the remainder of this week there a lot of data coming out of Europe including core inflation and inflation for the Euro zone, Germany, France. Followed by GDP figures for Italy and their Government budget. With Europe feeling the pressure of a slowing economy its vital to see that their inflation figures start to come down naturally.
With ECB’s next meeting happening next week on the 7th of March, any major surprises might change the tone and outlook of how they like to proceed with their policies when it comes to cut rates. Central banks decision making on interest rates is what’s carrying markets for the moment and comments from these meetings can have big impact on currency pairs – which we have already seen on changes from initial forecasting that has changed and caused fluctuations on markets.
