Morning Update – 06/02/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a solid close after rather mixed US data with the S&P closing up 0.73% but the session saw choppy FX markets with the dollar eventually ending lower. Asia was quiet and with the lack of data this week that is not surprising but the Nikkei did manage to eke out a rise of 0.3% as USDJPY holds above support at 112.00. EUR was higher early in the session as German Fin Min (Spiegel) said Euro exchange rate is too low for German economy’s competitive position; ECB must make policy for that works for Europe as a whole, it is too loose for Germany; told Draghi that expansive monetary policy would drive up German export surplus; originally said will not publicly criticise policy direction but does not want to be personally criticised for the consequence of ECB policy.. French Far-Right Party Presidential Election Manifesto (144 ‘commitments’): election will be followed by 6 months of talks with EU to regain 4 sovereignties (monetary, legal, territorial & economic); will hold in-out referendum at the end of 6 months; would aim to leave euro and re-denominate French debt stock into new currency; would create levy resembling an import tax; additional taxes for firms which hire foreign workers; certain rights would be only for French citizens e.g. free schooling; vows to fight globalisation. Le Pen (leading the polls right now with 25% intentions of votes) officially kicked off her election bid this week end.. Very little data this morning or this afternoon from the US.. Good luck..