Dollar slips

The euro has gained another half a cent or so against the dollar to trade close to $1.06, while sterling is also a touch firmer against the US currency at almost 1.23. This in turn leaves the single currency-pound exchange rate still hovering in and around the 86p mark

European and US equity markets both closed broadly flat yesterday, while government bond yields edged higher with German and US 10-year yields trading at circa 1.60% and 3.20% respectively this morning

ECB member and head of the German Bundesbank, Joachim Nagel, says “history has shown that inflation expectations can become un-anchored if central banks are too slow to tackle inflation”, noting that “longer-term inflation expectations are still close to our target of 2%” and the ECB needs “to make sure that things stay this way”

Capital goods orders in the US rose for a third month in a row in May, according to data published yesterday, suggesting businesses are continuing to invest

Data due today includes consumer confidence and house prices in the US