Morning Update – 26/05/16 – by Arjun Lakhanpal

Morning all.. Wall St had another solid session and closed up 0.7% as oil rallied and fears over a Fed hike disappeared. This is sending a very positive signal to the Fed suggesting they can hike without concern over equity markets. Oil helped and overnight traded above $50 (Brent) and that coupled with a less than dovish BoC yesterday saw USDCAD fall steeply, trading as low as 1.2975. Oil prices gained as much as 2 percent in the U.S. session, after government data showed a larger-than-expected drop in crude inventories. -Brexit Poll (BMG, Online): Leave 1pt ahead vs 2pt ahead in last BMG poll on 26th Apr; (Remain 44%, Leave 45%); young people (who have a poor track record for voting turnout) have v strong support for Remain; three previous BMG online polls had Leave camp ahead, but lead is decreasing.. GBP remains well bid against the dollar and EUR. Brent just above $50 and WTI at $49.86 up 0.6%. Nikkei closed up marginally as USDDJPY fell steeply on no news at all. It moved almost 0.5% in a few seconds and dealers are still scratching their heeads as to why. Seems a lot of stops were triggered all the way down with little liquidity. This morning we get a look at Swedish Consumer confidence and PPI, Spanish GDP, Italain Retail sales and UK GDP and government spending. Good luck