Morning Update – 02/12/2016 – by Arjun Lakhanpal

Morning all.. Wall St closed mixed again with the Dow up and S&P lower by 0.35% after a mixed session. Asia was quiet with stocks, oil, yields and the dollar all falling; the Nikkei closing down just under 0.5%. A quiet session due to the important data released from the US later today with NFP’s. This could set the tone for the dollar into year-end. EUR held gains from sources comments that the ECB may discuss tapering but we still have concerns over the Italian referendum this Sunday. Italy Economy Min: banking system is strong but a “no” vote would make it harder for banks to raise money; not seeing any impact on public finances from a ‘no’ vote in Sunday’s referendum; no risk of a ‘financial earthquake’ but could have 48hrs of turbulence.. USDJPY was range bound but lower making a low of 113.58 overnight. GBP also holding gains from comments from Davis suggesting the UK could continue to pay into the EU for access. Brexit Min Davis: suggestions that UK may reverse its position on Brexit are misleading, add confusion & risk undermining negotiation position.. GBP remains near the highs set yesterday. This morning we get Spanish & Norway unemployment, UK Construction PMI and EY PPI data. The main event though will be NFP data from the US later. Good luck..