Currencies tread water ahead of ECB press.....>

FOREX: Currencies tread water ahead of ECB press conference

-The ECB are expected to unveil some material downward revisions to their growth

and inflation forecasts for this year but are unlikely to significantly shift

forward guidance at today's rate decision and subsequent press conference.

Market focus will probably rest most heavily on any mention of further TLTRO

operations to avoid a 'funding cliff' for Eurozone banks, although this is

likely to have only reached the discussion phase so far.

-EUR, GBP, JPY and USD trade in a particularly tight range so far Thursday, with

the only price action of note being a modest recovery in AUD and NZD after a

dour session yesterday and a pullback in the SEK. European equity markets mostly

trade lower, although peripheral markets outperform slightly (Spain in

particular).

-Outside of the ECB decision, Eurozone final Q4 GDP is due (with all components)

as well as weekly US jobless claims and nonfarm productivity data, Japanese GDP

and the US jobs report tomorrow. BoC's Patterson and Fed's Brainard are also due

to speak.