USD: The Fed is not concerned about the inflation due to the ease of some of the risks that existed (BREXIT, CHINA – US trade negotiations). Moreover, Fed remains satisfied with the economic activity and labour market. As a result, during the press conference Powell came to the conclusion that there were no strong indicators for “moving in either direction" at present. Today, US Labour report, Nonfarm Payrolls expected at 185k with previous at 196k.

Source: Bloomberg - Commerzbank

 

EUR - should tend to appreciate through 2019 due to interest rate hike cycle in US end. Moreover, ECB will continue to reinvest bonds for a long time after the end of net purchases.

GBP-  the uncertainty will remain high for a long time through the Brexit scenario. The BOE now sees inflation at 1.6% below the 2% target.

Source: Bloomberg - Commerzbank

 

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