Morning Update – 10/03/2017 – by Arjun Lakhanpal

March 10, 2017 by

Morning all… Wall St closed marginally higher in a quiet session but Asia was bulled up by the rise in USDJPY which broke through 115.00 resistance as US yields surged again to trade above 2.6%. The Nikkei closed up an impressive 1.48%.. USDJPY making a high of 115.46 so far and is trading on the highs as I type. US 10yr yield sits at 2.605% and oil is unchanged. No data of note overnight but we have seen AUD and Kiwi hold as the dollar rallied against the JPY and thus JPY crosses all had a decent rally last night with EURJPY extending gains after Draghi comments yesterday. PBOC Dep Gov Yi (China Economic Daily): China will not devalue yuan to stimulate exports; will definitely not engage in a currency war; will stick to current FX framework to keep yuan basically stable. There are some concerns growing with regard to the US hitting its debt ceiling later this month. Treasury’s Mnuchin (letter to Ryan): will suspend sales of state/local Govt securities as of noon ET 15th March due to the debt limit expiration; Treasury will take other extraordinary measures to prevent a US default; calls on congress to raise debt limit at first opportunity.. This morning we get French and UK Industrial Production along with UK Construction output and Trade data. The main event will be the US payrolls data later so a quiet one due before. However most now going for a higher number than originally expected with most estimates for NFP now above 200k. Good luck