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Mario Draghi not expected to decide on an interest rate cut yet – Adam Narczewski

FXstreet.com (Barcelona) - The recent crisis developments in Cyprus as well as unfavorable Eurozone economic data are not sufficient reasons for the ECB to cut rates in April, in the opinion of Adam Narczewski. The analyst believes that an announcement of other measures to stimulate the economy would be more possible.

Adam Narczewski is not sure however what kind of measures could that be: “A bond buyback program is rather out of question. The ECB used to do that with the southern countries’ bonds, but it would sterilize them.” The expert does not see another LTRO round either: “hard to expect that one as currently banks are paying back the funds they got through LTRO.” That is why he braces for an interesting press conference following the interest rate decision.

Forex: GBP/USD presses higher on US session with BoE tomorrow

Ahead of the ADP employment data in the US, the GBP/USD began its quest towards further upside, breaching above 1.5120 and climbing to 1.5140 zone. The jobs report was expected to rise from 198K to 200K in March, but February data was revised much higher, to 237K, and the March figure disappointed at 158K. The US ISM non-manufacturing PMI is next, with a slight drop from 56.0 to 55.8 expected. Now, ahead of the US ISM non-manufacturing PMI (expected slight drop from 56.0 to 55.8), the pair is extending gains.
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US ISM Non-Manufacturing PMI falls to 54.4 in Mar from 56 in Feb

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