Dollar softer

The euro and sterling have both gained ground against the dollar to trade at almost $1.06 and just shy of $1.25 respectively this morning, while the single currency-pound exchange rate is hovering just below 85p

European stocks have opened in positive territory today – gaining around 1% in early trading – while in government bond markets, US and German 10-year yields are not much changed at 2.86% and 0.98% respectively with equivalent UK yields a little higher at 1.90%

Retail sales in the UK rebounded in April according to data published this morning, increasing by 1.4% in volume terms following a fall of  1.2% in March. That said, consumer confidence fell further in May according to the latest GfK survey

Fed member George says the recent weakness in US equity markets is not surprising and partially reflect the central bank’s monetary policy tightening, adding that it doesn’t alter her support for further half-point interest rate hikes to cool inflation

It is quiet on the data front today with Euro area consumer confidence the only release of note