Dollar remains on front foot

The dollar remains on the front foot this morning trading at around $1.04 and $1.22 against the euro and sterling respectively, while the single currency-pound exchange rate continues to hover around the 85p mark

European equities are ahead in early trading today, up almost 1% and reversing yesterday’s fall, while US stocks closed broadly flat yesterday having rallied into the close of business

Government 10-year bond yields are a touch higher this morning at about 2.90% and 0.90% in the case of US and Germany respectively, while equivalent UK yields are up to 1.75%

Irish Central Bank Governor and ECB member Makhlouf  says it “is clear…that the era of negative (interest) rates is reaching its conclusion”,  adding that it is “realistic to expect that the first move in the ECB’s interest rates will happen soon after net asset purchases end and that rates are likely to be in positive territory by early next year”

Fed Chair Powell says “if the (US) economy performs about as expected, it would be appropriate for there to be additional 50-basis point increases (in interest rates) at the next two meetings.”

Data due today includes industrial production in the Euro area and consumer confidence and import prices in the US