And other Weekend news

  • It’s done: LDP and Komeito are steering towards an absolute majority, already having secured 300 seats early Tokyo time, 311 are needed
  • What means that the Constitution revision is equally nearing, fiscal and monetary policy remaining on the same course and the next Tax hike remains on course as planned.It should be mildly bearish JPY or stable .
  • Elsewhere Mrs Yellen warned about the new neutral of interest rates would be closer to 2.75%, lower than previous but still some ways to go from the 1.25% we are at now . Not sure it will have a downwards impact on the USD as some predict.
  • The White house would consider 2 candidates to take the helm of the Fed, namely Powell and Taylor for Chair, respectively Vice Chair. This should be stable to mildly bullish USD
  • Spain: Rajoy called article 155, putting the Catalan government on OFF, Puidgdemont of course refusing and denouncing the plan to sack the Catalan government. Battle to continue and to be rather negative for the Euro in the meantime.
  • Italy’s Veneto and Lombardy are voting in autonomy referendums. It’s been kind of ignored but Liga Nord is calling for a harder stance by both Regions. Sorry to follow with a possible extra stress factor for the EURO.
  • In the UK , Liam Fox said the Brexit Bill can only be part of the final deal with the EU. EU has the 180° view of this. GBP could open on the defensive again tonight.
  • Russia and U.S. in a renewed stand off in Syria could dadd a little shiver to risk but so far the market chose to ignore the Syrian conflict .
  • Earnings Season continues in the U.S. Sofar it’s been a good cru.

Plenty happening but contradictory signals for markets been sent I’d say. Here are Friday’s closing rates, will update on any gaps tonight. In the meantime enjoy a peaceful Sunday night.
And for our Japanese followers, stay safe in today’s typhoon. Ki o tsukete

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