Dollar a touch weaker

The euro has edged back up to around the $1.22 level against the dollar, while sterling has also strengthened against the US currency to trade more than a cent higher from yesterday morning at just below the $1.37 mark. The pound is a also a touch firmer against the euro, trading close to 89p this morning

US 10-year bond yields set a fresh high of 1.18% at one point during yesterday’s session before retreating to end a little lower on the day overall at 1.13%, while equivalent German yields closed higher at -0.49%. Meanwhile, European and US stocks both chalked up modest gains yesterday

Bank of England Governor Andrew Bailey says there are “a lot of issues” with adopting negative interest rates, one of which is that it may “complicate banks’ efforts to earn a rate of return” which in turn may impact on lending to the real economy

The House of Representatives is likely to vote today to impeach Donald Trump for a history-making second time in response to the events that took place in the Capitol last week. If so, the process then moves to the  Senate, though when that will happen is unclear

Data due today includes industrial production in the Euro Area and CPI inflation in the US