Dollar firmer again

The dollar has gained some further ground against both the euro and sterling to trade below $1.17 and at about $1.27 respectively this morning, while the single currency-pound exchange rate is largely unchanged at 92p. European equity markets ended flat yesterday but their US counterparts gained around 1%, while core bond yields ended marginally higher on the day

ECB member Panetta says the “strengthening of the euro since March has offset some of the impact of the central bank’s monetary stimulus and led to an “undesirable tightening of financial conditions”

Bank of England Governor Andrew Bailey has said that while the Bank is examining whether negative interest rates can be implemented in the UK, it “doesn’t imply anything about the probability of us using negative interest rates”, adding that the recovery in the economy is “very uneven” and unemployment is probably higher than reported

The Chairman of the Federal Reserve in the US notes that “both employment and overall economic activity…remain well below their pre-pandemic levels, and the path ahead (for the economy) continues to be highly uncertain”

Data due today includes flash PMIs in the Euro Area, UK and the US