Bond yields reverse course

The euro and sterling gained about one cent and two cents against the dollar last week respectively and kick off this week trading at about $1.04 and $1.21. This in turn sees the single currency-pound exchange rate at 86p this morning

In government bond markets, German and UK 10-year yields reversed course on Friday, having fallen through the rest of last week, with both increasing by around 10bps to 1.97% and 3.12% respectively

Oil prices slid on Friday and they are lower again at the start of play today. Brent crude is now at around $81 per barrel, down almost $15 p/b in November to date

ECB’s Muller says the central bank will do “everything in our capability” to bring inflation back down to its 2% target, adding that the greater risk at this juncture would be to stop raising interest rates too soon

It is a busy week ahead for economic data with, amongst other releases, Euro area CPI inflation on Wednesday and PCE inflation and the employment (payrolls) in the US on Thursday and Friday respectively