Afternoon Market Update – 23/01/2017 – by Jazz Singh

With a lack of economic data on the calendar we expect a quiet session today. The big mover this morning is the dollar to the downside as investors become sceptical of the Trump trade. With the greenback and equities elevated to such high levels in the aftermath of his election, some are now worried that Trump’s rhetoric shall not filter through to his actions as President. The dollar index is finding some support in the vicinity of $100.00, a level last breached at the beginning of December. Cable continues its leg higher from just before Trump’s inaugural speech as we see $1.2470 becoming a level of resistance. With the UK High Court ruling tomorrow on Brexit bets are being taken that the government shall lose its appeal, giving a further boost to the pound. European bourses have popped higher from their worst levels in more recent trade while US equity futures point to declines at the cash open. Gold is on the rise this session as a consequence of the risk off tone in markets, while crude is down 1.1 percent after news from the US showed an increase in the use of drilling rigs. The calendar for this afternoon is sparse with a late speech from ECB President Mario Draghi the only event of note.