Majority see Lagarde watching and waiting -...>

FOREX: Majority see Lagarde watching and waiting

- Mirroring the Fed decision yesterday, the majority of analysts see the ECB

watching and waiting for the impacts of their emergency policy measures to take

effect. Some, however, see the bank moving further on measures to prop the

economy today, which could include freeing up the PEPP further by loosening

restrictions or by boosting the total size of the programme.

- Price action so far in Europe has been few and far between, although the

dollar carried through some of the Fed-inspired weakness to help EUR/USD inch

through to Tuesday highs to print $1.0891.

- In EMFX, TRY resumed its downward trend to narrow the gap with 2020 highs of

7.0077 as the Turkish central bank's Quarterly Inflation Report left the

governor with plenty of room to cut rates further, while adding that the bank

have no specific policy to defend the TRY at a particular level.

- Outside of the ECB, focus turns to weekly US jobless claims, personal

income/spending and Canadian GDP. MNI Chicago Business Barometer data is also on

the docket.