“Although we’re not expecting any change of policy at this ECB meeting we do suggest looking quite closely at the language,” said Ian Stannard, a currency strategist at Morgan Stanley, noting in the Dow Jones report the possibility that the central bank might hint at action further ahead. CurrencyShares Euro Trust (NYSEArca: FXE) is off 1.4% this year on a strengthening U.S. dollar. [Rising Dollar ETF Could Halt Rally]
Meanwhile, the Bank of England will “come under intense pressure to inject billions of pounds into the economy when it meets on Thursday after a survey showed business confidence fell in February,” The Guardian reports.
Some big investors are betting the British pound will decline even more. [British Currency ETF Drops as Pound Sterling Hits 3-Year Low]
“Options traders have raised bets to the most in almost two years that it will depreciate against the euro, and strategists are cutting their forecasts at the fastest pace after the yen,” Bloomberg reports.
“You ain’t seen nothing yet,” said Neil Williams, chief economist at Hermes Fund Managers, in the article. “If the world believes there will be significantly more stimulus coming, which I expect, the pound is likely to be under further pressure.”
CurrencyShares British Pound Sterling Trust
