Aussie has strengthened overnight and this morning following the RBA’s decision to keep its benchmark rate at 1.5 percent. With inflation expectations on the rise, many do not expect any further rate cuts in 2017. The yen has weakened by some 0.1 percent as the BOJ now predicts its 2% inflation will not be met until after April 2018. The relatively muted market reaction was expected following the central bank’s decision to target government bond yields 6 weeks ago. UK manufacturing PMI hit the wires this morning coming in lower than expected. This relieved some of the sterling rally overnight following confirmation from Carney that he shall remain at the BoE until 2019. In recent trade we’ve seen a small bout of dollar weakness as Trump takes a lead in the ABC/Washington Post poll. This is the first time he has led in this poll since May.
Stocks have started on the back foot in morning trade, with Standard Chartered falling by 7 percent as quarterly profits came in lower than expected. BP has fallen by 3 percent as earnings dropped by nearly 50 percent. WTI looks to extend its losses from yesterday, with Goldman Sachs targeting the $40 handle if an agreement cannot be made at the OPEC meeting this month.j