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    Oil looking to close at its highest level of the year

    Brent Oil ( 1.57%) is one of the best performing markets so far today with price moving back above the $50 handle once more and if it closes at the current level or higher it would represent the highest daily close of 2016. WTI ( 1.82%) is also firmly higher to trade $49.70 on the European close. Gold ( 0.19%) has failed to see a significant pull back today following the large bid we saw on Friday afternoon after the NFP miss and the precious metal currently trades $1246.10 at the time of writing. 

    It’s been a buoyant start to the week for stock markets with strong performance in the Nikkei ( 1.7%) leading the charge during the Asian session and the bullish sentiment spilling over into both the European and US trading hours. The FTSE ( 0.75%) is the best performing of all European indices, with the benchmark showing remarkable disdain to the latest Brexit polls which suggest that the leave campaign has taken the lead. The US500 ( 0.54%) has moved above last week’s highs and the market has proved notably resilient of late, shrugging off Friday’s shockingly bad NFP to continue to post gains

    There was little by way of economic releases this afternoon with the this afternoon with a poor reading in US labour market conditions the only data point of note. The month on month decline of 4.8 was substantially worse than both the consensus and prior but shouldn’t come as too much of a surprise considering last week’s jobs report. Fed speakers were prevalent today with Rosengren, Lockhart and Bullard all offering their opinions on monetary policy. Nothing was said that would be classed as particularly ground breaking, with the later appearance from chair Yellen - the last occasion any Fed member will speak before next week’s meeting - likely to be the main event. 

    After severe losses on Friday, the US dollar is holding up better so far, but that could all change if Yellen uses dovish rhetoric in less than an hour. The USDJPY ( 0.75%) has risen fairly strongly so far whilst the GBPUSD (-0.08%) and EURUSD (-0.04%) are little changed. The continued strength in oil has boosted the Canadian dollar, with USDCAD (-0.67%) trading 1.2854 on the European close.

    Looking ahead to this evening at 17:30 Fed chair Yellen is due to speak in Philadelphia before there’s the RBA rate decision at 05:30 tomorrow morning. Other than that the economic calendar is fairly light with UK HPI at 08:30 arguably the biggest release of the European morning and Canadian Ivey PMI the biggest of the afternoon session. 

     

    Any person acting on this information does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.


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