Morning Update – 10/03/16 – by Arjun Lakhanpal

Morning all.. After another choppy session, Wall St managed a late rally and closed up 0.5%.. The BoC left rates unchanged and was not as dovish as expected and USDCAD fell steeply. The BoC left rates unchanged last night but RBNZ cut rates rather suprisingly and sent Kiwi tumbling. In Asia tthe stock markets rallied with the Nikkei up 1.25% with HK marginally higher but China over 1% lower. Kiwi still trades close to session lows set at .6625 as Wheeler said Rate projections factor in 2 further cuts; Further cuts dependent on data and USDCAD close to the lows set at 1.3240. CPI rose in China and it seems like food prices are on the rise rather steeply.. In Japan PPI prices fell again. USDJPY rallied in the Asian session on a stronger Nikkei but is giving up gains into the London open. EUR is drifting away from the highs set in NY as traders start to price in further cuts from the ECB at their meeting today. This of course is the main event of the week. As well as the ECB meeting we also have the Draghi press conference where we may get further stimulus measures announced but a 10bp cut in the deposit rate is the least expected. In addition to this we have French IP data, Spanish retail sales and Norway inflation data.. Good luck..