Financial market research and analysis

A mostly positive session in Asia as the upside in energy prices coupled with some marginal gains in Apple shares helped to underpin risk sentiment. Warren Buffet is said to bought a small stake in the company – essentially rendering it a value stock as opposed to a growth opportunity.
Oil prices have, for the most part confounded markets this year but it seems the negativity on the price of the commodity has

The Aussie dollar gained in the aftermath of the RBA minutes release which were clearly less dovish than expected despite the cut in interest rates last week. Nevertheless, we cannot rule out additional cuts in the near term as the combination of slowing growth in China and the pull back in iron ore prices may force the banks’ hand.

Cable has risen for the second consecutive day on foot of the most recent phone poll on Brexit. The remain votes (in this poll anyway) are comfortably ahead. Momentarily trading above the 1.45 level, the next near term resistance point would be 1.4531. The arrival of the TNS poll which indicated that the ‘Brexiteers’ were ahead has pushed the pound back form these heady levels.

EURGBP is also balancing out some of the recent sterling strength trading at 0.78 with the overall trend looking like we may push lower still towards the 0.7750 level.
UK CPI was expected to show a 0.5% increase y/y with RPI slated to show a 1.6% change. The bank itself had expected a lower than expected CPI print and they were vindicated as April inflation fell back to 0.3% from the 15 month high in March. It’s unlikely to change the BOE stance on monetary policy just yet
The dollar index has taken a step back, the barrier of the 50 DMA and the trend resistance from the early February highs are keeping any real gains in check. A slew of US data due out later this afternoon may help with direction in the near term.