Norges Bank, SNB keep rates steady

•     Norges Bank, SNB keep rates steady

–    Norges Bank says they cut rates in December “as a hedge” against weakness in the economy that hasn’t happened, so no need to cut; but likely to cut in the future

–    NOK rallies sharply; could be outperformer if economy defies conerns

–    SNB complains that CHF is “significantly overvalued,” but forecast of continued deflation suggests they can’t or won’t do anything about it

–    I expect CHF to weaken vs USD but probably gain a bit vs weak EUR

•     GBP the big loser as BoE Chief Economist talks about rate cuts

–    Says chances of rise or cut are “evenly balanced,” contrary to what Gov. Carney says

–    Big surprise; market thought rate hike is a question of “when,” not “whether”

–    On top of UK political turmoil, this is a new concern = GBP negative

•     Today:

–    Greece:  Lots of payments due, not so much money. Withdrawals from banks accelerating in the face of Dijsselbloem’s talk about capital controls. Watch Greece!

–    Eurozone: Current account for Jan

–    Canada:  CPI for Feb expected to decelerate, putting pressure on BoC = CAD-negative

–    Speakers: Fed’s Lockhart & Evans to speak; look out for more clues on FOMC thinking