Dollar a touch weaker post Fed

The dollar has lost some ground post yesterday’s Fed meeting with the euro and sterling trading north of $1.21 and close to $1.40 against the US currency respectively this morning, leaving the single currency-pound rate once again largely unchanged at just under 87p

Core bond yields are steady with US and German 10-year yields at 1.64% and -0.23% respectively, while European stocks have opened a little higher today after chalking up modest gains yesterday

The Fed left interest rates and the pace of its monthly bond purchases unchanged following yesterday’s meeting, with Chair Powell saying the economic recovery in the US “is far from complete” and therefore a “highly accommodative” monetary policy stance remains appropriate

The Fed noted that “indicators of economic activity and employment have strengthened“, while “the sectors of the economy most adversely affected by the pandemic remain weak but have shown improvement”

Data due today include the Euro Area Economic Sentiment Indicator from the European Commission and an advance estimate of Q1 2021 GDP growth and jobless claims in the US