Dollar remains on the front foot

The dollar remains on the front foot this morning and has strengthened to around $1.1750 against the euro and to under $1.36 against sterling, which in turn leaves the single currency trading firmer against the pound at about 86.5p (bringing its gains over the past week to around 1p)

US equity markets regained ground yesterday after selling off on Monday, while European stocks have opened in positive territory this morning. US bond yields have also edged up, to around 1.22% in the case of 10-year yields, with German 10-year yields broadly flat at -0.41%

President Biden says the recent spike in inflation in the US is “temporary” but adds that “the Fed is should take whatever steps it deems necessary to support a strong and durable economic recovery.”

The number of new housing starts in the US rose again in May, increasing by more than 6% following a gain of around 2% in April

It is very quiet on the data front today with little or nothing of note scheduled for release