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ECB isn't likely to move rates; BoE might expand QE program - Yohay Elam

According Yohay Elam, analyst at Forex Crunch, the European Central Bank should remain on hold in March, as "Draghi's warning on the exchange rate of the euro already had a significant effect, and the elections in his home country already did more than a rate cut could have done.”

The expert suggest that the press conference following the monetary policy announcement might be in the center of attention as the ECB head "is likely to try and balance between the current economic situation which is quite depressing, and the optimism for growth in H2 2013.”

On the other hand the Bank of England, which also holds its meeting on Thursday, might announce additional asset purchases. "The downgrade by Moody's, together with the growing support for more QE and the lack of fiscal stimulus from the government will likely lead the MPC to action,” Yohay Elam believes.

Forex: EUR/USD gets below 1.3000 after US factory orders

The EUR/USD is being pressured on the downside as the US session unfolds. First, the US ADP employment data says that the economy added 198K jobs in February, instead of 170K, and revised January's figure from 192K to 215K. The EUR/USD has fallen below 1.3000 and has gone to 1.2989.
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Forex: USD/JPY going higher on US session

The USD/JPY is pushing higher on the US session as the greenback gets stronger on better than expected US ADP employment and US factory orders data. Investors will also be pricing expectations ahead of the BoJ meeting taking place overnight. The USD/JPY moved to as high as 93.69 but has returned to 93.50/60.
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