Euro back near parity

The euro has strengthened some more against the dollar and is now trading close to parity, while sterling has also gained further ground against the US currency to trade at around $1.1450. This in turn leaves the euro-pound exchange rate hovering in and around 87p this morning

Government bond yields have popped higher this morning, reversing a small bit of their decline over the past week or so, with UK and German 10-year yields up to 3.90% and 1.90% respectively and equivalent US yields at 3.65%

European equity markets rallied strongly yesterday, rising by around 4% or so, while US stocks closed with gains of about 3%

ECB member Centeno says its “obviously” the case that inflation in the Euro area has been “too high, for too long”, adding that the central bank will continue to raise interest rates

Data due today includes services PMIs in the main economies and the ISM index of services activity in the US