Markets toy with policy expectations as.......>

FOREX: Markets toy with policy expectations as central banks urged to act

- Policy response is the theme of the session so far, with markets watching

carefully for what measures central banks and governments can take to combat the

economic effects of Coronavirus. Statements from the likes of the Fed, BoJ and

BoE already have provided scant confidence to markets, but have helped the

modest bounce in core European equities so far today. Whether this is maintained

into the NY crossover, however, remains to be seen, with peripheral stocks

already turning lower once more.

- GBP is the poorest performer in G10 so far Monday, after the Bank of England

pledged to take whatever steps necessary to ensure market stability and is

working with the Treasury to monitor all market developments.

- Odds of rate cuts across the globe remain particularly high, and today's Swiss

sight deposits data is further evidence that they could take a more

interventionist stance, as they intervened to the tune of CHF3.5bln last week.

- ISM manufacturing data from the US takes focus here, which is expected to

moderate slightly from January's 50.9 reading. ECB's de Guindos speaks.