Morning Update – 15/11/2016 – by Arjun Lakhanpal

Morning all.. Wall St closed more or less unchanged on the day as stocks took a back seat to bonds and FX markets again. It was also a quiet session in Asia with the Nikkei also unchanged.. The market clearly still dominated by moves in US yields and through most of the Asian session they remain elevated but a stall/fall into the close has hit USDJPY again taking it from 108.38 to 107.85 very quickly as US 10yr moved from 2.21% to 2.19%; the short term traders getting caught rather long. GBP was a little weaker as London walks in, as the BBC (cites leaked Brexit memo from Nov 7): Govt has no common Brexit strategy due to divisions within cabinet; negotiating strategy may not be agreed by cabinet for 6 months; Whitehall is working on 500 Brexit related projects, may need additional 30k staff; It is all still about yields and any signs of weakness may see the dollar take a hit. RBA Nov Minutes: keeping policy steady is consistent with meeting policy targets; reiterates rising AUD could complicate economic transition; underlying inflation expected to return to normal over time; risks around infl f/c were broadly balanced; economy to grow close to potential during next few quarters before picking up; considerable uncertainty about strength of labour mkt; some signs wage growth stabilized; steadier China economy has reduced global d/side risks.. This morning we get CPI from France, Spain and Sweden, Italian GDP and UK CPIRPI and PPI data. Good luck..