Dollar a touch firmer

Some relief for the dollar with the US currency gaining around a cent against the euro from yesterday’s low point to trade just below $1.12 this morning . This as the market once again prices in a strong chance that the Fed will raise interest rates at next month’s meeting, having pared back the likelihood of such a move  in the midst of Trump’s difficulties last week. In this regard, Fed member Harker said yesterday that a June rate hike is a ‘distinct possibility’

Sterling is also firmer against the euro this morning, trading at around 86p from yesterday’s low of not far off 87p

US bond yields continue to edge higher and are now about 10bps off last week’s low in the case of the benchmark 10-year yield (at 2.28%). US stocks, meanwhile, closed higher for a 4th consecutive trading session albeit its gains were marginal

Moody’s has downgraded China’s credit rating (to A1 from Aa3), citing concerns about the country’s financial strength given its high level of economy-wide debt. Stocks in China are lower but the response more broadly in markets has been muted

Brent crude oil prices are back up to over $54 per barrel ahead of tomorrow’s meeting of OPEC, which is expected to agree on an extension of production cuts to the first quarter of next year

The flash composite PMI for the Euro area was unchanged in May (at 56.8) though still points to a pick up in the pace of growth in the second quarter of the year

At home, employment rose by 68,600 or 3.5% year-on-year in the first quarter of the year, according to the QNHS. The unemployment rate fell to 6.8% from 7.1% in the final quarter of 2016, while the estimate for April was revised up slightly to 6.4% (still the lowest rate since June 2008)

Quiet on the data front today while the Fed publishes the minutes of its May policy meeting