Dollar still on the front foot

The dollar remains on the front foot and has strengthened to almost $1.12 against the euro and to under $1.34 against sterling. This in turn leaves the single currency-pound exchange rate a touch firmer this morning trading at about 84p

Government bond yields backed up yesterday with US and UK 10-year yields rising by more than 5bps to around 1.61% and 0.95% respectively, which equivalent German yields rose by around 5bps to -0.30%

The Composite PMI for the French economy rose in October (to 56.3) according to the flash reading published earlier this morning, with the fastest increase in services sector activity in almost four years more than offsetting a second consecutive monthly contraction in manufacturing

ECB member Schnabel says “it’s plausible to assume that (Euro area) inflation is going to drop below our target of 2% in the medium term. However, the risks to inflation are skewed to the upside…(and) uncertainty has increased with respect to the pace and extent of the decline”

President Joe Biden has re-appointed Jerome Powell to a further term as Chair of the Fed

Data today includes flash PMIs for the Euro area, UK and the US economies