Dollar gains ground

The dollar has gained some ground on the foreign exchange markets, as concerns about the spread of the Delta variant weighs on stocks. The US currency has strengthened to under $1.18 against the euro and to almost $1.36 against sterling, leaving the single currency-pound exchange trading at just over 86p

European and US equity markets sold off yesterday shedding around 2.5% and 1.5% respectively, though the former have clawed back some ground at the open this morning.

Bonds rallied as stocks fell with US 10-year yields ending the day around 10bps lower at 1.19%, while equivalent German yields dropped by about 5bps to -0.40%

Oil prices have fallen further following the decision of OPEC+ to boost supply. Brent crude has shed another $4 or so and is now sitting just below $70 per barrel

Data due today includes housing starts and building permits in the US