• Japanese exports in 11 month losing streak
  • European Central Bank and Federal Reserve decisions today

Hands up anyone who, based on last night’s leaders debate, changed their minds over who they would vote for in the General election. Anyone…….anyone…..? Of course not. This confrontational X-Factor style politics is such tosh. The markets certainly weren’t swayed in either direction. Sterling lost a little ground yesterday but has stayed in the midst of its recent ranges.

Japanese Yen stronger this morning

The Japanese Yen is oddly stronger against the British Pound this morning, despite a 9.2% drop in Japanese exports. The October result was the 11th contraction in a row; the worst losing streak since 2016. The list of reasons include China’s slowdown, the US-China tension and a global fall in demand for cars.
 
Markets don’t react to Chinese interest rates

The Chinese central bank dropped its base interest rate by 0.05 of one percent overnight. That is almost not noticeable in most terms and the markets failed to react.

In early data we saw a worse than expected German producer price index and South Africa reported zero inflation. Both results were marginally worse than expectations. Neither the South African Rand nor the Euro reacted to these releases. The Euro is awaiting the European Central Bank’s (ECB) slightly optimistically named stability review. That is out at 9:00am UK time and the obvious questions about monetary policy will be at the forefront of the minds of those reviewing the report. The Euro is flat lining at around USD $1.10 and €1.17 against the Pound.

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Oil inventories could cause Canadian and US Dollar movement

It is unlikely Canadian inflation will cause any major stir this afternoon but the markets have, of late, reacted to US oil inventories information. These stock level stats do impact the value of the US Dollar as oil is traded in USD and they impact the Canadian Dollar too because Canada is an oil exporter.
 
All eyes on Federal Reserve for interest rate decision

The last throw of today’s dice will be the Federal Reserve releasing the minutes from their last meeting.  The US president is amongst many who would like US rates to be lower. It will be interesting to see just how widely that view is held within the Open Market Committee of the Fed.
 
Homeward bound

And we often hear stories of remarkable animal journeys but, for time and distance, this story from Santa Fe, New Mexico is a corker. The Santa Fe Animal Shelter scanned a cat that had been brought in, only to discover it went missing five years earlier in Portland, Oregon. That 1,200 mile journey can’t be explained, but the cat is now back with its original owner in Portland. You can’t help wishing the chip were trackable, can you?

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