Morning Update – 28/10/16 – by Arjun Lakhanpal

Morning all.. Wall St closed down 0.3% even as oil gained and after the close we saw some disappointing earnings from Amazon that took the shares down 9% at one point..Range-bound G10 FX session overnight with all currencies in ~20bp ranges compared to LDN close yesterday. NZD the relative outperformer in G10 as it pushed to a high of ~0.7145. USDJPY had a slightly more choppy session amongst the mixed inflation data that was released out of Japan; USDJPY on the margin, continued its rally from LDN session yesterday after; 105.40 last. Asia has seen a stronger session though with the Nikkei up 0.62%, trading higher on the back of USDJPY remaining above 105 all session. JPY: closed above 105, despite a lot of offers to eat through around 105.00. We haven’t been back below 105.00 overnight, and opens now for 107.25/70 area. Some interim resistance at 105.55, may low.. The October Tokyo core CPI, a leading indicator for the national CPI, was -0.4% yoy, a narrower decline, albeit only marginally, than the -0.5% printed in September. AUD was the largest underperformer after new home sales rose only 2.7% in September from August, when they grew by 6.1%. OPEC remains front of mind as talks on how much each cartel member should cut convene in Vienna today, with non-members entering discussions Saturday; Brent has settled above $50 for now. SEK the other big mover! Riksbank fairly dovish yesterday, and exploded above 9! 9.33 next. Riksbank modified rate path flatter and Norges was neutral. Despite strong confidence number from Sweden, NOKSEK trended up on market interpretations of a more dovish Riksbanks than the Norges. Riksbank will watch the ECB and next CPIF print going forward. GBP remains weak and is starting to impact on the consumer as import prices rise. This morning we get French PMI and Consumer consumption data, Regional and national CPI data from Germany, CPI from Spain, retail sales from Sweden and Unemployment from Norway. In the US we see a first look at Q3 GDP data.. Good luck..