Euro gains more ground

The euro has gained some more ground against the dollar to trade at around $1.0250 this morning, and is also a touch firmer against sterling at about 85.25p. The pound, meanwhile, is hovering just above $1.20 against the US currency

European and US stocks rallied yesterday, the latter gaining almost 3%, and the former have opened in positive territory again this morning. In government bond markets, German 10-year yields have nudged higher to trade close to 1.30% while equivalent US yields are broadly flat at around 3%

The annual rate of consumer price inflation in the UK picked up again in June to 9.4% (from 9.1% in May), according to data published this morning, though the core rate, which excludes energy and food prices, dipped for a second month running to stand at 5.8%

In Italy, Prime Minister Draghi will address parliament this morning on whether he plans to continue in his position given the recent turmoil in his coalition government

Data due today include Euro area consumer confidence and existing home sales in the US