Dollar loses some ground

The euro and sterling have both gained some ground on the dollar to trade at around $1.1650 and close to $1.38 respectively this morning, which in turn leaves single currency slightly firmer against the pound trading at about 84.5p

European equity markets are marginally higher at the start of play today, having lost ground yesterday, while bond yields are flat to a touch lower at around -0.15% and 1.58% in the case of German and US 10-year yields respectively

ECB Governing Council member Villeroy says the central bank believes inflation in the Euro area “will come back below 2% between now and the end of next year” from 3.4% currently, adding that “there is no reason for the ECB to raise its interest rates next year”

Manufacturing output in the US fell for a second consecutive month in September with supply constraints most likely weighting on this sector of the economy

Data due today includes construction output in the Euro area and housing starts in the US