• Euro under pressure

    The euro is under pressure this morning, having rallied to over $1.18 against the dollar at one point yesterday, trading almost a cent lower at under $1.1750 and therefore not far off this week’s low of around $1.1720. Softer than expected French PMI data released a short while ago is not helping the single currency’s cause There was some respite for Italian […]

  • Italian bond yields higher again

    There was another leg higher in Italian bond yields yesterday as the market continues to come to the terms with the prospect of a governing coalition of the anti-establishment Five Star and the far-right League. In particular, 10-year yields rose by 16bps to 2.38% (a 3-year high), taking the cumulative increase to 50bps in a little over a […]

  • Euro still drifting lower

    The euro is drifting lower against the dollar this morning, extending last week’s losses, against the backdrop of political developments in Italy, where a coalition government of Five Star and League – the markets’ ‘nightmare scenario’ before the recent election – may be about to become a reality. The single currency shed the best part of 2 cents against […]

  • Euro steadier – for now

    The euro is steadier against the dollar, having fallen over the first half of the week, trading at just over $1.18 against the US currency. That said, Italian bonds are under pressure again this morning –  10-year yields are moving up once more having closed largely unchanged yesterday – so the single currency may not be out of the woods […]

  • Italian politics in focus

    Italian politics, and in particular some of the prospective policies of the country’s potential  new government of the anti-establishment Five Star and right-wing League, was very much in focus for markets yesterday. Italian 10-year bond yields rose by around 16bps to 2.10%,  their highest level since October last year, with spreads over equivalent German bond yields widening out by 20bps to around 150bps The euro came […]

  • Dollar firmer again

    US bond yields rose further yesterday, with 10-year yields climbing to almost 3.10% at one point before ending the day at 3.07%, their highest level since 2011. With the US economy growing at a solid pace, inflation in line with its target, and the labour market operating at full-employment, the Fed is almost certain to raise interest rates further, which will […]

  • US 10-year yields above 3% again

    US bond yields are edging higher, with benchmark 10-year yields breaking above 3% again and so perhaps set to test their late February high of around 3.05%. The move up in yields seems to be helping the dollar, which has been on the front foot overnight The dollar has regained ground against the euro to trade close to […]

  • Euro off its lows

    Having lost ground fairly steadily against the dollar recently, the euro has managed to bounce off last week’s near six-month low of just shy of $1.18, helped by slightly softer than expected US inflation data, to trade this morning more than a cent higher at around $1.1950. Whether this is the start of a sustained euro rally […]

  • Sterling lower post BOE

    Sterling fell following yesterday’s Bank of England (BOE) interest rate decision, weakening to lows of around 88.4p and $1.3460 against the euro and the dollar respectively before recovering some ground against both. The euro also rose against the dollar after slightly softer than expected US inflation data, strengthening to almost $1.1950 though it’s back to $1.19 this morning The BOE left […]

  • BOE interest rate decision today

    Sterling is little changed against the euro and the dollar, at around 87.5p and $1.3550 respectively, ahead of the Bank of England’s (BOE) latest interest rate decision due at noon today. The single currency, meanwhile, is off yesterday’s lows against the dollar but still remains below the $1.19 level, so it may not be out of the woods just […]