Dollar a little weaker

The dollar is a touch weaker against both the euro and sterling this morning trading close to $1.14 and at over $1.36 respectively, while the single currency-pound exchange rate is once again little changed as it continues to hover just below 83.5p

Equity markets recovered some ground yesterday, though the gains were fairly modest, while government bond yields were in consolidation mode (for now) following the recent spike higher, ending a little lower on the day

Fed Chair Powell says the central bank will use its monetary policy tools “to get inflation back down”, adding that if it has “to raise interest rates by more over time, it will”

The latest CPI report in the US is published later today. The consensus expects the annual rate of consumer price inflation to have picked up further in December and to have ended 2021 at 7%, up from 1.4% in December 2020

Other economic releases scheduled for today include industrial  production in the Euro area and real hourly earning in the US