Morning Update – 23/11/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a mixed session into the Thanksgiving Holiday with the S&P closing down Marginally, the Nasdaq up marginally and the Dow finishing down 0.27%. The main story though was in FX where USDJPY led the dollar lower as US yields fell and the curve continues to flatten. Despite USDJPY weakness and making a low of 111.06 in Asia, the Nikkei managed to rally still. This correlation seems to have broken now with the Nikkei closing up 0.48%. The Fed minutes suggested at the last meeting that meeting earlier this month saw an interest-rate increase in the near term even as tepid inflation drove divisions over the policy path and as financial stability concerns cropped up.  Policy makers held rates steady at the meeting but are expected to hike next month as they continue with gradual tightening. Unemployment is at a 16-year low, although inflation remains well beneath their 2 percent target. The dollar declined and yields on two-year Treasury notes dipped after the minutes were released. With a December Fed rate hike almost fully priced in, market-implied odds of another rate increase by March held around 55 percent, based on trading in federal funds futures. Data this morning sees French Business confidence and manufacturing PMI from France, Germany and the EU with UK GDP data.. Good luck.