Morning Update – 26/01/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a very strong session with the Dow opening above 20k for the first time and extending gains to 0.8% on the day. This helped the Nikkei rally a further 1.8% which was impressive considering the lackluster performance in USDJPY which failed on a couple of occasions to break 114.00, even though US 10yr yields made new recent highs and broke above resistance at 2.52%. In fact the dollar across the board yesterday was rather disappointing for the bulls. BoJ sources: higher inflation may not be good if solely down to oil and weaker JPY; inflation must be backed by economic strength; uncertainty on outlook, particularly for wages; weaker CPI may imply companies are cautious about raising prices.  NZ CPI came out last night and unfortunately the first print on BB was incorrect which sent the Kiwi down as low as .7239 before the correction could be made. We then saw it rally all the way back to make a new high on the session. CPI came in tad higher and shot the flightless bird back up to 0.7308. We have since traded up to 0.7314 and that makes kiwi the best performing G-10 currency for the month, up 6%. GBP is holding on to gains above 1.2600.. Sources: Britain to publish legislation today seeking parliamentary approval to begin Brexit talks; no indication on timeline for passage through parliament; some details expected to emerge when Brexit min Davis answers questions from lawmakers at 09:30 GMT. Sky News: RBS to announce within days that it is taking another multibillion pound charge for mis-selling MBS. Pres Trump (Dept of Homeland security address): US will get back control of its borders beginning today; DHS Secretary and White House will begin immediate construction of border wall.. This morning we get Spanish and Swedish unemployment data, Swedish PPI, Italian retail sales and UK Q4 GDP.. Good luck