Reuters

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The uncertain political climate in the UK and the United States is  weighing on the dollar and sterling. Concerns over U.S. political turmoil and the complete mess that is the current U.S. political situation will lead to continuing demand for safe haven gold.

S&P Futs Near All Time High On Strong Euro Data; Oil Drops On Trump's SPR Sale Plans

S&P futures rose alongside European stocks as Asian shares posted modest declines. The euro set a new six-month high and European bourses rose as PMI data from Germany and France signaled that the ECB will have to tighten soon as Europe's recovery remains on track, with the German Ifo business confidence printing at the highest level on record, and hinting at a GDP print in the 5% range.

Frontrunning: May 23

  • Children Among 22 Dead in Bomb Attack During U.K. Campaign (BBG)
  • 'Please retweet': Parents go online to find their children (Reuters)
  • Stars from Manchester and beyond express shock at bomb attack (Reuters)
  • Trump’s Budget Seeks Cuts to Taxes, Social Programs (WSJ)
  • Trump Proposes Selling Off Half the U.S. Strategic Oil Reserve (BBG)

OPEC Thinks Deeper Cuts Might Not Be Required

“We believe that continuation with the same level of cuts, plus eventually adding one or two small producers... will be more than adequate to bring the five-year balance to where they need to be by the end of the first quarter 2018.”

China Imposes Sugar Import Tariffs As High As 95%

China, the world's top importer of sugar, announced it would impose substantial tariffs on sugar imports after lobbying by domestic mills: after Monday's ruling, the total sugar duty will nearly double, with Beijing imposing an additional 45% tax to these imports in the current fiscal year taking the total to 95%.

Russian Hackers Infected 1 Million Bank Customer Smartphones

Russian hacker used malware planted on more than a million Android smartphones to steal over 50 million roubles from domestic bank customers and were planning to target European lenders before their arrest, Reuters reports, noting that the entire group has been arrested.

Frontrunning: May 22

  • Trump Arrives in Israel, May Show His Cards on the Peace Process (BBG)
  • Taxes, Budget Are Focus for White House Despite Probes (WSJ)
  • Paul Manafort’s Lucrative Ukraine Years Are Central to the Russia Probe (BBG)
  • Ford set to fire CEO Mark Fields as shares founder (Reuters)
  • Producers Set to Extend Cuts as Rally Stalls: OPEC Reality Check (BBG)

Euro Surges After Merkel Says Euro Is "Too Weak", Blames ECB

“The euro is too weak - and that’s because of ECB policy  - and so German products are cheap in relative terms,” Merkel told school students in Berlin in discussion of trade surplus. “So they’re sold more.” Merkel added that additional investment in Germany could help to reduce trade surplus.

Brazil's President Tells Supreme Court To Suspend Corruption Probe Of Brazil's President

In a move that will surely light the proverbial lightbulb over Donald Trump's head, Brazilian President Michel Temer, having been officially dragged into Brazil's massive corruption scandal last week, said on Saturday he would ask the Supreme Court to suspend its investigation into allegations he was also involved in the carwash corruption scheme, vowing to remain in power.