Dollar a touch firmer

The euro and sterling are both marginally lower against the dollar this morning trading at around $1.08 and $1.24p respectively, leaving the single currency-pound exchange rate still hovering just below 87p

Government bond yields continue to head higher with both US and UK 10-year yields increasing by more than 5bps to over 3.70% and close to 4.10% respectively, while equivalent German yields have nudged up to 2.45%

Fed member Bullard says he thinks the Fed will have to “grind higher” with interest rates, adding that two more 25bps hikes would be appropriate

Resumed talks between President Biden and the leader of the House on the US ‘debt ceiling’ were constructive it seems, though they ended without agreement

The pace of economic activity in France dipped in May according to the flash PMIs published earlier this morning, with the composite PMI slipping to 51.4 from 52.4 in April. The composite PMI for Germany held steady this month though, coming in at 54.3

Economic data due today includes flash PMIs for May for the Euro area, UK and US, as well as new homes sales in the US