Published: 2024-03-11T11:55:16.000Z
European Summary and Highlights 11 Mar
Director of Research , Macroeconomics and Strategy
1
The USD drifted slightly lower in European trading, with the main focus remaining the JPY.
European Session
The USD drifted slightly lower in European trading, with the main focus remaining the JPY. Speculation of a normalisation of policy on March 19 continues to grow, with news reports that the BOJ is looking at switch from yield curve control to pre announced bond buying and a BOJ policy hike seen as a close call.
A degree of caution exists before the U.S. CPI release, but if no surprises are seen then the expectation is that JPY gains could build towards the end of the week with the BOJ meeting one day before the Fed.
Elsewhere, GBP remains well underpinned on a view that the BOE will be slower than the ECB to ease policy.