Dollar steadier

The dollar is steadier against both the euro and sterling this morning trading in and around $1.22 and $1.3550 respectively, while the single currency-pound rate is a little lower at about 90p. Core bond yields nudged up again yesterday with US 10-year yields now closing in on 1.1% and equivalent German yields up to almost -0.50%

Equity markets in the US added more than 1% yesterday while European stocks closed marginally higher. The latter have opened in positive territory again this morning following sold gains in Asian markets overnight

Following the events on Capitol Hill on Tuesday, outgoing US President Donald Trump has changed his tune, saying “a new administration will be inaugurated on January 20” and that his “focus now turns to ensuring a smooth, orderly and seamless transition of power”

The annual rate of inflation in the Euro Area remained at -0.3% for a fourth consecutive month in December, according to the flash reading published yesterday, while the core (or underlying) rate remained at 0.2% for a fourth month in a row also

Data due today includes the Euro Area unemployment rate for December and the latest employment report in the US, also for December, with the consensus expecting the economy to have added a modest 50k jobs last month