RBC Capital Markets: ECB and BoE meets; USD gears for NFP tomorrow

Quotes from RBC Capital Markets

• The USD is broadly firmer as markets are seemingly preparing themselves ahead of the US NFP tomorrow. EUR and GBP are the major underperformers against a stronger USD ahead of the ECB and BoE today, although neither is expected to surprise.
  
  
• EUR: After the comprehensive package of measures agreed by the ECB Governing Council at its previousmeeting in January, there is virtually no prospect of anything further being announced at today's meeting, assuch, this meeting has relatively limited potential for surprise in our view.
  
  With respect to the ECB's updated staff projections, we expect to see substantial downwards revision to the short-term inflation outlook (our own forecast is for HICP inflation to average 0.0% y/y in 2015, whereas the ECB currently sits at 0.7% y/y). 
  
  At the same time, however, we look for a meaningful upwards revision to the GDP profile, with the current 2015 projection of 1.0% likely to be pushed up closer to, or even perhaps beyond, our forecast of 1.4%. 
  
  
• GBP: The six year anniversary of unchanged Bank Rate at 0.5% is upon us as a unanimous decision to keep policy on hold is once again expected.