Morning Update – 02/11/2016 – by Arjun Lakhanpal

Morning all.. Wall St had a bout of the jitters over Trump closing the gap on Clinton and in one Poll showed a 1 point lead. This saw Wall St close down 0.68% and send Asia into a nervous session. The Nikkei closed down 1.76% aided by a steep drop in USDJPY as a risk off tone took hold of investors. This uncertainty seems likely to increase as we move towards the US election and may see more choppy sessions ahead. It looks like being a much closer race now than originally thought. Oil was lower into the US close and lower again in Asia as crude inventories grew steeply. API inventory suggested Crude +9.3M; Cushing +1M; Gasoline -3.6M; Distillates -3.1M and WTI is down another 1% this morning.. USDCAD is near the highs and is subject to Trump. Lower oil and Trump gaining in the polls will likely weaken the Canadian dollar further. Kiwi the out-performer as unemployment data was stronger than expected.. With the market recently more focused on a likely Fed rate hike in December, many look to have been caught wrong-footed. Another few days of watching US polls is ahead of us. This morning we get a look at PMI data from across Europe and the UK along with German unemployment.. Good luck..