Dollar remains under pressure

The dollar remains under pressure with the euro closing in on $1.20 against the US currency this morning and sterling trading just north of $1.34, which leaves the pound still hovering a little under 89.5p against the single currency. US stocks closed marginally lower yesterday while European indices closed marginally higher, with core bond yields little changed on the day

ECB member Schnabel says she is “not worrying too much about exchange rate developments” at the moment, noting that a depreciation of the dollar “tends to boost global trade and global growth” which in turn helps Euro Area corporates

Fed Vice-Chair Clarida says the implication of the central bank’s new strategy for monetary policy is very clear and explicit: “following periods when inflation has been running persistently below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for sometime. Full stop”

The German government is expected to say later today that the economic fallout from the coronavirus will be smaller than previously thought with GDP now likely to contract by less than the 6.3% it had previously projected for this year

Data due today includes CPI inflation and unemployment in the Euro Area and the ISM manufacturing index in the US