Forex Flash: ECB and BoE expected to keep policies steady – TD Securities

TD Securities analysts point to central bank meetings (RBA, ECB, BoE) this week as the main attraction, which may explain the market’s reticence to extend positioning too aggressively at this point. “The recent trends that have characterized FX trading—EUR strength and JPY weakness—seem deeply entrenched in the market but the extent of the moves seen in the past few weeks—unusually persistent by recent standards—are starting to cause some second-guessing regarding their durability", wrote analysts Shaun Osborne and Greg Moore, expecting both ECB and BoE to hold its policy despite some analysts' somewhat dovish expectations. Key support for the EUR/USD is 1.34 area, while the GBP may bounce a little after BoE's decision.