ECB, Bank of England seen easing next week – MarketWatch

  ECB, Bank of England seen easing next week – MarketWatch

 Risky assets, including stocks and the euro, rallied Friday after the European Union managed to agree on more policy steps to address the credit crisis than markets had anticipated.
Traders expect the European Central Bank to also chip in by cutting rates next week to an all-time low. The Bank of England is also likely to ease monetary policy further by expanding its debt-purchase program.
“The second story in FX is now taking shape: what will the ECB do?” said Boris Schlossberg, managing director of foreign-exchange strategy at BK Asset Management. “The answer to that will drive trade in the euro-dollar (US:EURUSD) next week.”
The European Central Bank, meeting on Thursday, will likely cut its benchmark rate to 0.75% from 1%, analysts at Citi and Credit Suisse forecast.