Morning Update – 27/10/16 – by Arjun Lakhanpal

Morning all.. Wall St closed marginally lower as oil weighed again even after a draw-down in inventories. Asia has been mixed with the Nikkei closing down 0.34%. Relatively quiet session with no key events and moves well contained: all G10 FX remained in ~20bp ranges compared to LDN close yesterday. NZ trade deficit the main G10 data point to highlight. New Zealand’s deficit widened to record highs due to one-off rise in aircraft imports; exports to US fell over 16% but shipments to China rose 2% y/y; Dairy exports down 1.2%. NZDUSD failed to show a reaction to the data, remaining within a ~15pip range for the whole Asia session. Kuroda commented on scarcity and composition issues around the BoJ’s QQE program in parliament. He didn’t offer any new information, stressing both the flexibility of the program and the fact that the BoJ is not responsible for FX intervention; muted reaction in USDJPY. EUR remains above 1.0900 and GBP holding most of yesterday’s gains. London property prices are set to fall next year as uncertainty about Britain’s exit from the European Union damps the U.K. housing market, according to the Centre for Economics and Business Research. US yields remain elevated and sit at 1.8% in the 10yr..This morning we get Spain unemployment, Swedish consumer confidence and the Riksbank rate decision, Norway rate decision and UK GDP data so a busy morning.. Good luck