Main exchange rates steady

The main exchange rates are steady this morning with the euro trading at around $1.19 against the dollar and at about 89p against sterling, while the pound is hovering just under the $1.34 level against the US currency. Equity markets treaded water yesterday, with European and US stocks largely flat on the day, and core bond yields edged lower while continuing to trade in relatively narrow ranges

Consumer spending in the US rose for a sixth consecutive month in October, while the annual rates of headline and core inflation both edged down last month (to 1.2% and 1.4% respectively) and remain below the Fed’s target of 2%

The minutes of this month’s Fed meeting note that the economic recovery is continuing but both output and employment are still well down from their pre-pandemic levels

ECB Vice-President De Guindos says the main purpose of the measures to be announced at the December monetary policy meeting will be “to keep the flow of credit (to firms and households) alive”

Germany’s government has extended the country’s partial shutdown to December 20 – with  restaurants, cinemas and gyms to remain closed – as the country recorded a record increase in new coronavirus cases yesterday

Data due today includes Euro area money supply and private credit flows