Euro back at parity

The euro and sterling continue to creep higher against the dollar, trading at parity and just shy of $1.15 respectively this morning, while the single currency-pound exchange rate is trading close to 87p

Government bond yields are still ticking up. US and UK 10-year yields are now close to 4.25% and 3.65% respectively and equivalent German yields are trading at about 2.35%

European and US equity markets chalked up some modest gains yesterday, having advanced at the end of last week as well

Global oil prices have been nudging higher recently with Brent crude not far off $100 per barrel (up from around $84 p/b in late September)

Fed member Barkin says “our (interest) rate moves take time to bring inflation down, but the Fed will persist until they do. One of the key lessons from the 70s was not to declare victory prematurely.”

Data due today include retail sales in the Euro area and the small business optimism index in the US, with the mid-term elections in the US also in focus for markets