Dollar up on Trump

Donald’s Trump promise to outline a ‘comprehensive’ tax plan over the next few weeks propelled the dollar higher last week. The US currency rose by almost 1.5 cents against the euro and kicks off this morning trading at around $1.0650

US bond yields reversed course following Trumps comments with 10-year yields rising by around 10bps, to over 2.4%, from their intra-weeks lows

Equity markets in the US chalked up gains of about 1% last week, setting new record highs in the process, while European stocks were broadly flat

French 10-year bond yield spreads over Germany moved out by around 7bps last week (to their widest level since 2012) amid some concerns ahead of the forthcoming presidential election. Italian and Spanish spreads also widened out

There is a heavy schedule of data due this week with CPI and retail sales in both the UK and the US, while Janet Yellen testifies on the outlook for the US economy and monetary policy