Easter lull

There’s an Easter holiday lull in markets, it seems, with the main currencies trading in pretty narrow ranges. The euro has been hovering around the $1.13 level against the dollar for all of this week to date, while sterling has been largely unchanged against the US currency at about $1.30 and ditto against the euro at just over 86p

Equity markets were broadly flat yesterday despite generally better than expected economic data out of China, though European stocks have opened lower this morning after a weak Asian session overnight. Core bond yields are drifting a little lower again amid the softer tone to equities

The annual rate of CPI inflation in the UK was unchanged in March at 1.9% and  the core rate also held steady at 1.8%, while inflation in the Euro area was confirmed at 1.4% last month according to the final reading

Fed member Bullard sees growth in the US picking up over the remainder of this year, while his colleague Harker sees “at most” one interest rate this year and one more in 2020 (the market, in contrast, is pricing in a reduction in rates over this period

Data due today includes  flash PMIs in both the Euro area and the US, with retail sales also scheduled in the UK and the US