BoE to hike rates again

The euro and sterling are little changed against the dollar this morning trading just below $1.02 and a touch under $1.22 respectively, leaving the single currency-pound exchange rate still hovering below 84p

European and US stocks both gained almost 2% yesterday, while government bond yields are not much changed with German and US yields at 0.85% and 2.71%

Fed member Bullard says he favours ‘front loading’ large increases in interest rates and would like to see them end this year in a range of 3.75% to 4% (from 2.25% to 2.5% currently)

The Bank of England (BoE) announces its latest monetary policy decision at noon today and it may decide to up the pace of tightening with a 50bps increase in interest rates, following quarter point hikes at each of its last four meetings

Data due today includes the construction PMI in the UK and jobless claims and trade balance in the US