Morning Update – 10/01/2017 – by Arjun Lakhanpal

Morning all.. Wall St suffered somewhat as some nerves surrounding Trumps speech this week grow and US yields and the dollar both fell too. The S&P fell 0.35% and Asia was quiet but lower too with the Nikkei down 0.8% on a weaker USDJPY which took out 116.00 and made a low of 115.20 at one point before rallying into the close on the back of strong China data. AUD and Kiwi remained well supported on the back of this data with AUD making a high of .7385. China Dec PPI: +5.5% y/y vs +4.5% cons; increase at fastest pace since Sept 2011..China Dec CPI: +0.2% m/m vs +0.3% cons (+0.1% prev) & +2.1% y/y vs +2.3% cons.. It is this data that put a bid into the dollar again..GBP however remained weak on concerns over a hard Brexit. Australia retail sales grew just 0.2%, missing estimates of 0.4%, as department store spending remained flat while consumer staples grew by the biggest margin. Early this morning we saw very weak Norway CPI data which may suggest they will be back easing.. Seeing sellers of NOKSEK.. This morning we get French & Swedish IP.. Good luck..