All eyes on ECB and BoE today

[RTFXtrading]

Will the lower than expected growth data, the continuous elevated inflation data and the free falling oil price be enough to make the ECB change its attitude from the last couple of meeting? The fact that the oil sell off is still fresh and the posibility of inflation still looming, the ECB may continue to keep the interest rate on hold. The question is whether the market will lean towards agreeing with ECB's neutral stance or will it rebel against it thus driving the euros further down?

Many analysts believe that the BoE will continue to keep its rate on hold. The reasoning behind this is that the fact that GBP index has fallen below its pervious 10 year range could continue to worsen the inflation. If the BoE decided to do a surprise cut then the chances are that the GBP would likely fall lower but then the heavy GBP short market would have to consider profit taking thus the GBP would then make a rally from lower level.

For the moment EUR/USD is up 0.1% at 1.4513, GBP/USD up 0.35% at 1.7831 and USD/JPY up 0.15% at 108.45.