Weekly Market Outlook | 03.02.2017

Central Bank take a “wait and see” approach

Last week, the three main central banks held their first monetary policy meeting of the year and all them left unchanged their monetary policy settings. The market did not expect much from both the BoJ and the Fed as the former is more an a wait-and-see mode, betting the recovering in the US will drag investors out of long JPY positions, while the latter already lifted rate at its last meeting back in December. On the other hand, the BoE got all investors’ attention as the Brexit story is about to go live. Economic data in Europe continued to improve yet the ECB has yet to make any noteworthy acknowledgement. This reality could put them behind the curve in future policy setting.