Dollar firmer again

The dollar is on the front foot this morning, strengthening to under $1.13 again against the euro and to almost $1.34 against sterling (from over $1.35 late last week). This in turn leaves the single currency-pound exchange rate trading back below 84p, albeit marginally so

In government bond markets, German and UK 10-year yields fell over the course of last week and kick of this week at about -0.35% and 0.88% respectively. Equivalent US yields were little changed overall last week and trade this morning at around 1.55%

Oil prices have come off the boil somewhat of late with Brent crude dipping below $80 per barrel, down from a 2021 high of around $86 in late October

Fed member Waller says “the rapid improvement in the (US) labor market and the deteriorating inflation data have pushed me towards favoring a faster pace of tapering (of bond purchases) and a more rapid removal of accommodation in 2022” (i.e. begin raising interest rates next year)

Data due this week includes flash PMIs for the Euro area, UK and US economies tomorrow (Tuesday); and consumer spending and PCE inflation as well as jobless claims in the US on Wednesday