Euro remains higher against dollar

There wasn’t much follow through in markets after the moves that occurred early yesterday following the results of the first round of voting in the French election. The euro had already begun to ease back a bit against the dollar from the highs recorded in Asian trading and remained just below $1.09 for most of the day, though this is still well up from Friday’s close of $1.07. Similarly, the single currency slipped from its high against sterling to trade a touch below 85p

There was a notable fall in French bond yields, with 10-year yields closing more that 10bps lower and spreads over German tightening in by around 20bps, while yields in non-core markets like Italy and Spain also ended lower on the day

European equity markets rallied strongly, rising by around 4%, with French stocks outperforming slightly. The positive tone in stocks has continued in Asia overnight and Europe is opening higher again this morning

The IFO index of the business climate in Germany rose to a 6-year high in April, while the country’s central bank notes that the ‘economy is likely to have significantly gained momentum’ in the first quarter of this year

Data due today includes consumer confidence and new home sales in the US