Today’s focus turns to US and UK CPI inflation as well as US Industrial production figures for the US. Overnight, we saw a quiet session with oil’s recovery being the main theme.

  • Stocks: Asian stocks have recovered from 2 month lows on Tuesday after a rebound in US where stock markets gained around 1% on news that Warren Buffet is investing close to 1 bln in Apple stocks. The price of Oil stabilizing has also helped risk sentiment and stock markets worldwide.
  • Currencies: GBPUSD was a mover overnight in Asian, gaining nearly 100 points, helped by a report that the “remain” camp holds a 15 point lead over the “leave” rivals in UK’s Brexit referendum. AUDUSD also moved higher from 0.7285 to 0.7365 after minutes of the RBA surprised some investors with a less dovish than expected tone. EURUSD trades steady at 1.1310, still very close to 1.1283 lows touched on Friday.
  • Gold and Oil: Yesterday Brent crude oil broke above $49 per barrel – the highest level since November 2015 – and year to date Brent has gained more than 35%. A combination of Nigerian, Venezuelan and other outages, declining U.S. production and virtually frozen inflows of Canadian crude after wildfires in Alberta’s oil sands region helped to lift oil prices. The supply disruptions prompted long term bear Goldman Sachs to issue a bullish assessment for oil, on the near horizon. Gold prices closed narrowly higher after a very volatile session which saw prices bounce between $1289 and $1270. Commodities priced in dollars, including gold and silver, often trade inversely with the USD, as moves in the U.S. currency can influence the attractiveness of those commodities to holders of other currencies.
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