Dollar still on the front foot

The dollar remains very much on the front foot against the euro and sterling this morning, having chalked up sizeable enough gains against both currencies over the latter part of last week, and is trading at around $1.1875 and $1.38 respectively this morning – compared to around $1.21 and $1.41 last Wednesday – leaving the single currency-pound exchange rate little changed at just under 86p

US 10-year bond yields ended last week flat at around 1.45%, albeit not before hitting almost 1.60% immediately following Wednesday’s Fed meeting, though in contrast 2- and 5- yields jumped by more than 10bps on the week to 0.26% and 0.88% respectively

ECB member Holzman says the medium-term outlook for inflation in the Euro area points to steady interest rates ahead

The Bank of England announces its latest monetary policy decision this Thursday and, with the economy recovering steadily, is likely to leave well enough alone by keeping interest rates and the size of its bond purchases programme unchanged

Data due this week includes flash PMIs for the major economies on Wednesday and US consumer spending and PCE inflation on Friday