Forex Flash: ECB to leave refi rate unchanged - UBS

Expectations, it will be the word in the coming week when the RBA, BoC, ECB, BoE, and BoJ are scheduled to hold policy meetings. In the case of the European Union, ECB's president will need to start managing expectations specially after the Italian elections and the risk aversion environment.

"It will be interesting to see how the ECB responds after the Italian election and a return in risk aversion," points UBS analysts Geoffrey Yu and Manik Narain in a recent report. "LTRO repayments have also been somewhat disappointing, but with the balance sheet still contracting Draghi will need to start managing expectations."

Regarding the interest rate, the UBS bank expects "the refi rate to stay unchanged. "