Euro recovers ground

The euro has recovered some ground against the dollar to trade above $1.1250 this morning, as has sterling which has strengthened to over $1.24, all of which leaves the pound trading above 90p against the single currency, where indeed it has been for the last few sessions. Equity markets had a mixed start to the week with the US closing in positive territory (albeit with just modest gains) and Europe ending down on the day, while core bond yields finished a touch higher

Donald Trump has said the phase one trade deal with China is “fully intact,” this after his trade adviser Peter Navarro prompted a brief sell-off in Asian equity markets overnight after comments made by him were interpreted as a decision had been made to end the agreement

The head of Germany’s central bank, Jens Weidmann says the country has “experienced the sharpest economic slump” in its history, but that the “good news is that the trough (in economic activity) is likely to be behind us now, and things are picking up again (although) the steep slump will only be followed by a comparatively gradual recovery”

UK Prime Minister Boris Johnson will announce the latest stage in lifting the COVID-19 restrictions today as he is expected to give the go-ahead  for cinemas and museums in England to re-open their doors from July 4th, as well as  announcing whether to halve the minimum “social distance” between people rule from 2  to 1 metre

Data due today include flash PMIs in the Euro Area, UK, and the US