USD: Keeping the ‘considerable period’ language was viewed as dovish while lifting the ‘dots’ more hawkish. Efforts to talk up the uncertainty surrounding forecasts and the prospect for policy to deviate from expectations however softened the statements more dovish tilt. Now past the FOMC, we expect USD strength to continue in the near term.
EUR: Announcement of the 1st round TLTRO take-up at 10:15BST the primary focus for EUR. A more disappointing subscription than the 100-150bn expectation could be seen as motivating more monetary easing before long and weigh on EUR.
GBP: Uncertainty lingers heading into tonight’s referendum, and bounces likely to be short-lived. Another round of polls overnight showed the race is still indeed very close but still leans to a ‘no’, we estimate around 20% probability of a ‘Yes’.
JPY: Kuroda maintains relatively optimistic tone. Japan government seen lowering...