Market Review, May 31, 2016

Yesterday we saw the dollar hold steady against other major currencies, as hawkish comments by Federal Reserve chair Yellen still linger.

Trade volumes remained light with financial markets in the U.K. shut for a public holiday and U.S. markets closed for Memorial Day.

EUR/USD edged up to 1.1138, and USD/JPY climbed to 111.15.

This morning yen started to gain some strength as data on household spending, industrial output and unemployment all came better than expected.

Gold rebounded after dropping to key $1200 level for the first time since February.

With traders pricing in a 28% chance for a rate hike in June and 60% in July.

Oil prices are still around the $50 a barrel, although uncertainty ahead of an OPEC producer-group meeting later in the week is expected to cap gains. Iraq has raised its export quota ahead of the meeting, supplying 5M barrels of extra crude to its partners in June.

US oil prices were lifted this morning by the start of the peak demand summer driving season, although international fuel markets were weighed down by rising output in the Middle East.