Afternoon Market Update – 27/10/16 – by Jaz Singh

October 27, 2016 by

UK GDP came out better than expected on both a YoY and MoM basis. The immediate reaction in sterling was mixed, with cable reversing its initial gains within 30 minutes. The overall sentiment on sterling remains a sell, amplified by the UK trade minister’s comments that banks will likely lose their passporting rights following Brexit. The Yen has continued to weaken with many analysts suggesting the Bank of Japan shall continue on its current stimulus plan. USD/JPY tested the 105.00 area yesterday and seems to be heading in that direction again. The Norwegian krone has seen a rally across the board this morning following the central bank’s decision to keep the benchmark rate at 0.5% and no plans for further stimulus. The Mexican peso extended losses from yesterday following a Bloomberg poll showing Trump leading in Florida. Losses stand at 0.5 percent for the day. Oil has seen a slight uptick this morning following a sell off at the 50 handle on WTI. The market remains hesitant regarding OPEC’s so called agreement.  The FTSE 100 and DAX are up for the day off the back off positive earnings data from Barclays and Deutsche.