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Sterling traded in a tighter range in a quiet Friday's trade

There were no major data releases from the UK today, with British pound being traded in a tighter range. Sterling was pushed lower in the course of yesterday's session, mostly due to dovish ECB stanzas indicating that more stimulus is coming in future. However, we believe that this is only of a short-term basis, since recent UK data was positive, especially yesterday's Retail Sales figures that showed 1.9% increase, beating forecasts on 0.3% incline.
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ECB discussed deposit rate cut

At today's meeting ECB left interest rates unchanged. However, euro was pushed lower after ECB President Mario Draghi at the following Press Conference said that ECB is ready to act if 2% inflation target is in danger of being pushed back and that there was discussion on deposit rate cut, as well as set of additional measures. He also noted that ECB projections are based on assumptions. "If they change we have to adjust", Draghi said adding that projections are conditional to QE being fully implemented.
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Euro stable ahead of ECB Meeting tomorrow Market outlook continues to take on a generally outlook of consolidation as a quiet week builds towards what

could be another key ECB meeting on Thursday. Equity markets, forex and commodities have all bee unable to find much direction in the past could of days. There is a split of opinion over whether the ECB will be ready to announce further easing measures tomorrow, an issue further muddied by news that there has been s light improvement in bank lending in the Eurozone recently. Read more...

Euro lower as markets await for next ECB move

There are no major data releases both from Eurozone and USA, with ECB Meeting  being the focus of this week.The low inflation rate and the weak growth are the main drivers of the discussion for QE extension. The final September’s inflation in Eurozone released on Friday showed that Eurozone CPI fell by 0.1%. EUR/USD lost ground after ECB policymaker Ewald Nowotny said that it was now “obvious” the bank must do more to stimulate the Euro Zone economy.
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