United Kingdom

With the US closed for Memorial Day and UK markets offline due to a bank holiday, overnight volumes have been weaker than normal on little newsflow. The main story remains the stronger USD following Yellen's hawkish Friday speech, which not only led to the lowest Yuan fixing since February 2011...

... but pushed the USDJPY almost as high as 111.50 overnight before paring gains, however it was enough to send the Nikkei 1.4% higher.

This is grim:

David Cameron announced that the UK is sending a Royal Navy warship to the Mediterranean to stop arms smuggling and people trafficking along Libya’s coast. The British Prime Minister told the G7 summit in Japan that the UK was ready to take on a more “active leadership role” in Libya. The BBC reports: The UK already has a survey vessel, HMS Enterprise, operating in the area. Officials are to seek UN approval for the new warship to seize boats taking arms to so-called Islamic State.

In a world where fundamentals don't matter, everyone's attention will be on Janet Yellen who speaks at 1:15pm today in Harvard, hoping to glean some more hints about the Fed's intentionas and next steps, including a possible rate hike in June or July. And with a long holiday in both the US and UK (US bond market closes at 2pm today), it is no surprise overnight trading volumes have been dreadful, helping keep global equities poised for the highest close in three weeks; this won't change unless Yellen says something that would disrupt the calm that’s settled over financial markets.

Cable has strengthened notably in the last week or so as Cameron and Osborne unleashed phase 2 of "project fear" and 'some' Brexit polls suggested market fears of a 'leave' decision were overblown. However, the broad polls still show the decision is too close to call, which is why the news from Ladbrokes - Britain's largest bookmaker - that they have seen a sudden surge in Brexit bets in the last few days. Interestingly, sterling has started to leak lower today...