Euro remains under pressure

The euro remains under pressure, slipping below the $1.12 against the dollar overnight and trading just above this level this morning ahead of economic data out of Germany. The dollar is on the front foot generally, gaining ground as well against sterling (to trade at about $1.29), which has also slipped against the euro as UK politics and Brexit-related headlines start to re-appear. Elsewhere, US bond yields nudged lower yesterday even as the S&P 500 rose to a new all-time high on the back of an increase of almost 1%, which brought its gains since its Christmas Eve lows to an impressive 25%

It was quiet enough on the data front yesterday, with consumer confidence in the Euro area slipping in April, albeit remaining above the low recorded in January, and new home sales in the US rising further in March as lower mortgage rates recently on foot of a decline in bond yields support housing demand. Meanwhile, French business confidence released earlier this morning was unchanged in April, though it had improved in each of the three months to March

There is talk doing the rounds that Theresa May could face a challenge to her leadership of the Tory party, though this would first require a change to the rules for selecting the leader, and also talk that the government will put the Withdrawal Agreement Bill (as distinct from the Withdrawal Agreement itself) to a vote in parliament next week. The Tory- Labour Brexit “negotiations” have also resumed

According to a statement from the White House, trade negotiators led by U.S. Trade Representative Robert  Lighthizer and Treasury Secretary Steven Mnuchin will travel to China next week, as the two sides work to reach a draft trade agreement

Date due today includes the IFO Index of the business climate in Germany