Morning Update – 11/12/2017 – by Arjun Lakhanpal
January 11, 2017Morning all.. Wall St slipped as many now wait for Trump’s speech later today and some profit taking after such a strong run was likely but by the close the S&P closed unchanged on the day. In Asia we saw the Nikkei rise by 0.335 as USDJPY bounced away from the lows and 115.00 support held again. BoJ’s Kuroda (met with Abe at 05:30GMT): explained recent global developments to Abe; did not receive any specific instructions; no detailed discussion on Trump.. Japan Nov Leading Indicators: +1.9 m/m.. We are not exactly sure what Trump will say today but expect ideas on growth and spending but investors worried about what he may say with regard to protectionism and global trade alliances. NYT: Trump urges immediate repeal of Obamacare by Republicans; Trump wants Obamacare repeal vote sometime next week with replacement shortly after; Trump says: no cause for delay on repealing Obamacare, would not accept delay of more than a few weeks for replacement.. The tone for the USD and all US assets could be set by his speech at 16:00 GMT. USD majors held within narrow ranges in the absence of key economic data and flat US yields. A choppy price action in USDJPY again today, with the pair selling off to 115.68 lows early on in the morning before bouncing back to above 116. Antipodean currencies caught a slight bid overnight with AUD up ~30bps and NZD up ~20bps compared to yesterday’s LDN close. AUDUSD move higher in particular is primarily driven by the rally in base metals with iron ore and copper up overnight. This morning we get Spanish IP, UK trade data and Industrial production.. Good luck.
