Morning Update – 21/07/2017 – by Arjun Lakhanpal

Morning all.. Wall St had another mixed session with the S&P closing marginally lower and the NASDAQ slightly firmer after talk of investigations into Trump businesses. Reports announced Robert Mueller had expanded his probe into transactions involving the presidents business; This sent the dollar down and it stayed down; the USD is now trading at 11 month lows. Markets continued to digest comments from Draghi yesterday as EUR holds its highest level since August 2015. However, ECB sources (citing euro area officials ~18.10BST): ECB may not make decision on future of bond buying program until October; GC members expect to start tapering discussion at next policy meeting on Sep 7 but doubt they will be able to reach a conclusion then; officials cited wide range of issues to consider including pace of QE, wording of forward guidance & fresh economic projections as reasons September may not be decisive. AUD was the biggest mover overnight dropping 0.8% and trading to lows of 0.7875 after the assistant governor to the RBA Debelle commented that interest rate hikes overseas did not automatically means a rate hike for Australia. In treasuries yields dropped with the US 10yr yields down 1.1bps, JGBS down 0.7bps and the Australian 10yr note down 3.5bps. In the news Brexit Philip Hammond believes he has unanimous support in cabinet for a transitional Brexit deal to go into effect after two years. The IMF approved a $1.8bn bailout for Greece, the bailout is conditional on Eurozone countries providing debt relief to the country. This morning we get UK government borrowing but little else so a quiet morning expected.. Good luck..