Dollar still drifting higher

The dollar continues to edge higher against the euro to trade this morning at $1.09, its best level since around the end of September, and is largely unchanged against sterling at about $1.29, which leaves the pound marginally firmer against the single currency at 84.5p ahead of GDP data in the UK to be published later this morning

Core bond yields were largely unchanged yesterday, while stocks were mixed, with European indices closing slightly lower (and Ireland underperforming post the general election outcome) but US indices rallying into the New York close for a average gain of almost 1%. Meanwhile, Asian stocks have traded mostly in positive territory overnight

Fed member Daly says that ‘barring a material change in the (economic) outlook, I’m comfortable with policy (interest rates) where it’s at for the foreseeable future’

According to the latest data from the British Retail Consortium (BRC), like-for-like retail sales in the UK were flat year-on-year in January and were down 0.4% on an annual basis over the three months to January

Data due today include fourth quarter 2019 GDP in the UK  – with the consensus expecting flat growth on Q3, while the small business optimism index and job openings are due in the US