Markets hold breath ahead of ECB meeting......>

FOREX: Markets hold breath ahead of ECB meeting

-EUR, USD and GBP trade without direction ahead of Draghi's appearance at

1330BST and the rate decision itself at 1245BST. While no change in policy or

guidance is expected today, the Governing Council may face tough questions on

the PSPP portfolio and the bank's reinvestment policies.

-JPY trades stronger across the board after USD/JPY slipped below the channel

base yesterday and bears now look for a close below the 50-dma at Y110.57 for

further confirmation of any reversal.

-Antipodeans trade weaker, particularly AUD, following the CNY after the PBOC's

reference rate was fixed over 0.5% higher. USD/CNH remains in positive territory

ahead of the NY crossover, but still well below yesterday's highs of Cnh6.8208.

-Finally, the SEK trades marginally higher against most others following

stronger consumer and manufacturing confidence numbers, pressing EUR/SEK to the

lowest levels since July 10th.

-Outside of the ECB, weekly US jobs numbers, trade balance and durables goods

are due.