· As usual the Media needs dramas and there has been plenty of it in Cyprus. It would be a pity if this were to dominate too much of the ECB’s press conference, which, after all, is supposed to be about monetary policy.
· Cyprus is actually pretty small in EU context, and Draghi should focus on what is happening in the rest of the eurozone, which accounts for 99.8% of GDP
· USDMYR traded sideways in US last Friday night as most are away on a long Easter weekend. Markets are weary of the every closer inching of the GE and we continue to expect a range trade on the pair at 3.0800-3.1200 in the short term.
· Although markets are not particularly reacting drastically to the issues in EU, what is going on there is definitely not good. The flash PMI for the eurozone was down, and the Economic Sentiment indicators is weak, showing that the economy is mired in recession – not a very deep one, but a recession nonetheless. Even German data fell back. And this was before the impact of Cyprus will have been felt. And yes let’s not forget France.
· EURUSD still trading around the 1.2800 handle while USDJPY is holding up at the support level of 94.30, I expect more buyers should the pair track back towards 92.80 and 92.00.
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