All eyes on Vilnius as focus turns to ECB.....>

FOREX: All eyes on Vilnius as focus turns to ECB TLTRO terms

-It's been an uneventful European morning, with traders sitting on the sidelines

ahead of the ECB rate decision. No change is expected to headline policy, with

eyes turning to the modalities of the TLTRO programme and specifically the

pricing of the funding. Discounts to TLTRO terms (close to deposit rate of

-0.4%) could be read as a dovish lean, whereas a less generously priced

programme may suggest the ECB view the loans as a liquidity tool to avoid

funding crises, and not a policy crutch.

-MXN has been lively, trading close to the year's lowest levels against the USD

as Mexico/US negotiations ended without progress and as the Mexican sovereign

rating was downgraded by Fitch and placed on outlook negative at Moody's.

USD/MXN topped out at 19.8411 before pulling back slightly ahead of the NY

crossover.

-Outside of the ECB decision, weekly US jobless claims data is due, US &

Canadian trade balance numbers and Canadian Ivey PMI. Fed's Kaplan and Williams

are also scheduled to speak.