Dollar remains on the back foot

The dollar has lost more ground against the euro and sterling, shedding around a cent against both to trade close to $1.15 and over $1.37 respectively this morning, leaving the single currency-pound exchange rate largely unchanged at about 83.5p

Government bond yields were steady again yesterday with US and German 10-year yields at around 1.75% and -0.05% respectively, while equity markets chalked up some further albeit modest gains

The annual rate of CPI inflation in the US nudged up to 7% in December from 6.8% in November, while there was a notable acceleration in the core – or underlying – inflation rate to 5.5% from 4.9% the previous month

Fed member Brainard says “inflation (in the US) is too high, and working people…are concerned about how far their paychecks will go”, adding that the central bank’s “monetary policy is focused on getting inflation back down to 2% while sustaining a recovery that includes everyone”

Data due today includes jobless claims and producer prices in the US