Morning Update – 19/09/2016 – by Arjun Lakhanpal

Morning all.. Wall St had a weak close to the end of the week with the S&P down 0.4% but Asia was mixed with Japan closed for a holiday. HK and China both rallying.. FX markets were quiet but with oil rising we saw USDCAD lower and AUD rallied through the session.. Oil rallying on fighting in Libya and hope of an OPEC agreement later this month on stabilising oil prices. OPEC members are close to reaching an agreement on how to stabilize the market, Venezuelan President Nicolas Maduro said after speaking to his counterparts from Iran and Ecuador. USD weaker across the board for the start of the week amidst a broader risk-on tone across G10 FX and broader asset classes, giving back its gains from Friday. Commodity complex currencies the relative out-performers in G10 FX space with AUD up ~70bps, NZD up ~65bps and CAD up half a percent. In commodities space, precious metals also traded higher, led by silver. With Japan on holiday, JPY traded in contrast with broader risk-on move with USDJPY down ~25bps to settle above the 102.00 level. GBP is off the lows seen Friday.. Europe will make Brexit “very painful” and ensure Britain is worse off outside the EU, Slovakia’s premier has said, as he dismissed the UK’s confidence about divorce talks as “bluff”. This morning we get little data of note with just EU Current account data.. Good luck.