Dollar regains some ground

The dollar has recovered some ground after a number of Fed members insisted the central bank is far from done raising interest rates, with the US currency gaining almost a cent against both the euro and the pound to trade below $1.02 and under $1.22 respectively this morning. This leaves the euro-pound exchange rate largely unchanged hovering in and around 83.5p

US government 10-year bond yields rose quite a bit on the back of the Fed officials comments, increasing by around 20bps to 2.75%, while equivalent German and UK yields rose by almost 10bps to 0.85% and just shy of 1.90% respectively

Fed member Mary Daly says the central bank is ‘nowhere near’ finished in its fight against inflation, adding that, while a good start has been made, inflation is still ‘far too high’, with her colleague Charles Evans saying another 75bps hike in interest rates may be appropriate at the next monetary policy meeting

House prices in the UK rose by 0.1% in July according to the latest Nationwide measure and the annual rate of increase ticked up to 11%, though this was still below March’s reading of over 14%

Data due today includes services PMIs in the Euro area, US and UK as well as retail sales in the Euro and the ISM services index in the US