07.10.16

Good morning,

Overnight there was a flash Sterling collapse which momentarily saw prices fall as low as 1.1378 against the Greenback during the Asian session. In Japan the Labor Cash Earnings figures for August were down by 0.1% with the preliminary Coincident Index and the preliminary Leading Economic Index also published during the session. A long weekend in Japan with markets closed Monday for the Health and Sports Day holiday. USDJPY trading at 103.88 at time of writing.

In Europe this session we will get August data releases for German Industrial Production figures and France's Trade Balance figures and Industrial Output , along with Spanish Industrial Output. In the UK the Halifax House Price Index figures for the month of September will be announced. EURGBP printed  5 year highs and is trading at 0.8932 at time of writing. Following the Sterling crash where the markets experienced a chaotic 2 minute period the CABLE price plummeted and then recovered somewhat, but it is still trading at levels not seen since 1985. The GBPUSD pair is trading at 1.2441 at time of writing.

In the US today the Non Farm Payrolls figures will take some of the focus off the Sterling decline. When figures are released today there could be a marked increase in volatility as this week sees the possibility that a sizable portion of traders waited for the results of today's data to place positions. Canadian Unemployment data will be released to coincide with the NFP and USDCAD could see a large move should figures miss expectations. At time of writing the pair was trading at 1.3253 A couple of Fed members will speak this session with Fischer and Mester due to give talks later today.

I hope you all have a good weekend.