Euro-dollar steady

Notwithstanding falling stocks this week, which is occurring amid heightened concerns about the US-China trade situation, the euro-dollar exchange rate has been quite steady through it all, trading this morning pretty much where it closed out last week at just under $1.12. The main beneficiary in the current market environment has been the yen, which tends to gain ground during times like this, with the Japanese currency strengthening by more than 1% against the dollar this week to trade at just under Y110

China’s  government  has threatened to retaliate against any decision by the Trump administration to impose tariffs on all Chinese goods exports  to the US, though with the two sides meeting today for further talks, there’s still a chance of a trade deal being struck (which would certainly help to allay market concerns)

There has been a reprieve of sorts for Prime Minister Theresa May, with the 1922 Committee deciding against changing the rules for electing a new leader of the Conservative Party, though she’s still under pressure to announce her departure date. Regarding the other departure – that of the UK from the EU – the date of August 1st is being mentioned, but past experience would suggest we should just wait and see what comes to pass

The latest RICS housing survey in the UK reports continuing weak activity, with “headline indicators on demand, supply and prices all still stuck in negative territory”

Data due today mainly comes from the US, with jobless claims, producer prices, and the trade balance all scheduled for release