Euro faring a little better

The euro and sterling are both a little firmer against the dollar this morning trading at just over $1.13 and $1.29 respectively, though in both cases that’s still down from where they finished at the end of last week. At the risk of being repetitive, the euro-sterling rate remains more or less unchanged at around 87.5p, seemingly in a state of suspended animation awaiting developments on the Brexit front

Equities had a positive day with both US and European stocks chalking up gains of around 1%. In line with this, bond yields in the core markets nudged a little higher, with 10-year yields in the US closing in on 2.70% and equivalent German yields approaching 0.15%

ECB member Knot says the current period of weaker growth in the Euro area may cause the return of inflation to its target to be delayed, which of course means that a first increase in interest rates may also be delayed

Prime Minister May says she intends to put any revised Brexit deal she can muster to a meaningful vote in Parliament, but in the event that she can’t, then MPs will be given an opportunity to (once gain) try and “take control” of the process

Data due today include CPI inflation in both the UK and US, both for January, with the consensus expecting readings of 1.9% and 1.5% respectively (down from 2.1% and 1.9% in December)