Dollar loses some ground

The euro and sterling have both gained a little ground against the dollar from where they ended last week to trade at just over $1.18 and just under $1.39 respectively this morning, while the pound is marginally firmer against the single currency at around 85p

US equity markets advanced further yesterday, with the S&P 500 setting a new all-time high, buoyed by a run of very strong economic data lately, though core bond yields dipped with US 10-year yields edging down a bit more from last week’s high (of around 1.75%) to close at 1.70%

Employment in the US by just over 900,000 in March according to last Friday’s jobs report, a much larger increase than the consensus expected, while the unemployment rate fell again to stand at 6%. Meanwhile, the ISM measures of manufacturing and services activity both rose last month and signal strong growth across these two sectors of the economy

UK Prime Minister Boris Johnson has said a further relaxation of COVID-19 related restrictions in England will go ahead as planned from next week, including the re-opening of non-essential retail, personal care premises (e.g. hairdressers) and outdoor hospitality

Data due today includes unemployment in the Euro Area and job openings in the US, while the IMF publishes its latest World Economic Outlook