Euro grinds higher

The euro is grinding higher against the dollar as it continues to retrace some of its recent decline and is trading at just over $1.1850 this morning. It is little changed against sterling at around 89.5p

German and UK 10-year bond yields were marginally higher yesterday, while equivalent US yields were a touch lower. Spanish 10-year yields fell by around 7bps and are now back to their pre-Catalan  referendum levels. Meanwhile, equity markets in both Europe and the US chalked up modest gains

The minutes of the Fed’s recent meeting published yesterday evening showed ‘many participants’ thought that another increase in interest rates this year ‘was likely to be warranted’, while some others were keeping an open mind as they waited to see  whether forthcoming economic data  increased their confidence that inflation was moving up toward its 2% target

ECB Chief Economist Praet says that, while the euro area recovery remains ‘solid, broad-based and resilient’, there is not yet a ‘sustained adjustment in the path of inflation’ back to target

Data due today includes industrial production in the Euro area and jobless claims in the US