Morning Update – 19/04/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a wobble as geo-political tensions remain elevated and some poor earnings from GS. However the Nikkei managed to cling on to minor gains finishing up 0.1% in a quiet session. USDJPY holding above the US lows helping. USDJPY had a rather tight range along with most FX pairs with a low of 108.37 seen and a high at 108.73. GBP was still in demand but is off the highs set in NY but dealers in Asia still saw demand on any dip. May’s call for a snap election generally seen as a shrewd move with the opposition in disarray and the economy holding up. This could be a greater test for the Labour party and their leader. UK Times (cites YouGov polling data): PM May on course for 114 seat majority following snap June election; May could win 382 seats (vs 330 currently). EUR had a tight range and is still capped by uncertainties over the first round of the French election this Sunday. Dealers worried by the rise of the far left. IFOP Poll: 1st round: Macron 23.5% (+0.5pp), Le Pen 22.5% (unch), Melenchon 19% (-0.5pp); 2nd round: Macron 60.5%, Le Pen 39.5%. Oil was unchanged and US yields see the 10yr at 2.188% and this capping any dollar rally at present. This morning we have Italian Trade data and EU CPI to look forward to.. Good luck.