Morning Update – 27/01/2017 – by Arjun Lakhanpal
January 27, 2017Morning all.. Wall St had a very quiet session and closed around unchanged on the day but the Nikkei extended gains, rising 0.34% on the back of a decent rally in USDJPY, which also extended gains in Asia, trading as high as 115.24 and is on the highs now as Europe walks in. China now closed for 5 days due to Lunar holidays.. Commodity currencies were unmoved by the higher USD and EUR also remains in a tight range. Australian Q4 PPI higher: 0.5% vs 0.2 % prior. We saw more weakness in Cable which traded as low as 1.2532. PM May in the US today meeting Trump..UK PM May (before Republican lawmakers): cautioned US against withdrawing from world affairs; UK/US special relationship one of the greatest forces for progress ever seen; should engage with Putin but be wary; UK will act as a strong advocate for business, free markets and free trade; US/UK can look to remove trader barriers to see benefits, before formal trade deal struck. Mexican Foreign Minister: taxing Mexican exports will only increase prices and hit the American consumer; cannot accept the concept of a neighbour paying for US own wall; believes Mex/US will come to good agreements.. This morning we get French Consumer confidence, Spanish Retail sales, Swedish Consumer confidence and retail sales and Italian consumer confidence.. Good luck..
