Dollar regains some ground

The euro and sterling are both lower against the dollar in early trading this morning, dipping to under $1.03 and to $1.18 respectively, while the single currency-pound exchange rate is hovering just below 87p

In government bond markets, both UK and German 10-year yields declined for a second consecutive week and start out today at around 3.25% and 2.0% respectively. In contrast, equivalent US yields were broadly flat last week and are trading at about 3.80% this morning

European stocks closed out Friday with gains of over one per cent, while the S&P 500 in the US added around half a percent on the day

Consumer confidence in the UK nudged up for a second month in a row in November, according to GfK’s measure, though it remains close to a multi-decade low amid the ongoing squeeze on household incomes

Fed member Bostic says he believes “that 75 to 100 basis points of additional (interest rate) tightening will be warranted”, adding that this level of interest rates “will be sufficient to rein in inflation over a reasonable time horizon”

ECB’s Knot says the central bank needs to continue to “address high inflation persistence and growing risks of it becoming entrenched in people’s minds, which would make inflation more costly to tame”

It is a relatively quiet week ahead for economic data with flash PMIs for November in the Euro area, UK and US on Wednesday the main releases of note. Labour market data for Q3 are due in Ireland on Thursday, while the OECD publishes its latest Economic Outlook tomorrow (Tuesday)