Morning Update – 09/09/2016 – by Arjun Lakhanpal

Morning all…A busy session yesterday as Draghi did or said very little we didn’t already know but the big surprise was the massive draw down in oil inventories yesterday which saw oil race higher and take risk sentiment with it. However US stocks closed up just 0.22% and stocks in Asia saw the Nikkei close marginally firmer even with a higher USDJPY. Repeat of yesterday’s USD price action after the USD traded weaker versus all G10 FX overnight. EUR the marginal out-performer in relation to the other G10 pairs. EUR and JPY up ~30bps each versus the USD. USDJPY dipped below 102.00 during the overnight session briefly after Kuroda was in the headlines again after a meeting with PM Abe, however very little new information was provided on the upcoming BoJ meeting. Worth flagging a Nikkei article outlining three-quarters of non-government economists predict that the BoJ’s next monetary policy move will be to ease further and 60% think it will happen this month, a survey by the Japan Center for Economic Research found. Australian home-loan approvals fell in July as arguably, potential buyers stood on the sidelines amid a prolonged election vote-count; approvals fell 4.2% from June, the biggest monthly decline since January and worse than economists’ 1.5% estimate. This morning we get French and Spanish Industrial production data, Norway CPI and UK Trade data.. good luck