Morning Update – 16/12/2016 – by Arjun Lakhanpal

Morning all.. Wall St managed another day in positive territory but gave up a lot of early gains to finish up just 0.39% as Yields gyrated and the USD remained pretty firm. Asia was led a little higher by the Nikkei which closed up 0.66% as USDJPY broadly held gains and remained above 118.00 for most of the session. The low print was brief at 117.96. Oil was quiet overnight and marginally firmer but on the whole a quiet session. GBP at the upper end of the days range. BoE’s Forbes: drop in GBP since end of 2015 may add 0.7ppts to CPI but some concerns that Japanese banks want some clarity over Brexit or may look into moving out of London. AUD and other FX pairs had a very quiet night with little news. All in all not much breaking news but the dollar dips remain rather shallow so still demand on the pull backs. This morning we get French Business confidence, Italian and EU Trade balance and EU CPI data.. Good luck..