Dollar extends gains

The dollar has extended it gains against the euro, although they are modest enough, to trade this morning close to $1.10, which is still within the range of about $1.09 to $1.12 that has prevailed since the end of July. Sterling is performing relatively well – markets seem convinced there’ll be a Johnson majority government following the election – trading a little higher against the euro at just under 85.5p and at around $1.29 against the dollar

After edging down last week, US 10-year bond yields were broadly steady yesterday at just over 1.75%,  with equivalent German and UK yields also broadly steady at -0.35% and 0.70% respectively

The IFO index of the business confidence in Germany rose for the second month in three in November with firms’ assessment of current and future conditions edging up this month

Fed Chair Powell reiterates that the central bank sees “current stance of monetary policy as likely to remain appropriate” as long as the US economy evolves along the path it expects, which is one of steady growth, a strong labour market, and inflation running close to its 2% target

Data due today includes consumer confidence, house prices, and new home sales in the US