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Growth uncertainty puts global central bankers in wait and watch mode – Lloyds Bank

FXStreet (Delhi) – Research Team at Lloyds Bank, suggests that while January European manufacturing PMIs surprised to the upside yesterday (Spain, Norway and the UK particularly so), concerns over global growth remain.

Key Quotes

“The RBA left rates unchanged over night, but reiterated that they can and will ease further if needed. ECB President Draghi yesterday said they will review and may reconsider their policy stance in March.

Overnight Fed Vice-Chair Fischer highlighted that while the US economy has in the past managed to shrug off global headwinds they will remain on the cautious side. “We simply do not know” what they will do in March. It will be interesting to hear what BoE Governor Carney has to say on Thursday regarding the position of the UK, as he has been quite dovish recently.”

Oil drops 3% as oversupply worries return

Oil benchmarks on both sides of Atlantic continued its bearish momentum for the second straight session and fell to fresh four-day lows as supply glut concerns return to markets.
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Upside in USD/JPY remains limited - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the impact of a shift to negative rates in Japan is likely to have far less impact on the yen than the ECB’s move had on the Euro.
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