Euro still edging down

The euro is continuing to edge down against the dollar, and at just under $1.1150 is towards the lower end of the range of about $1.11 to $1.13 that has prevailed over the past month or so. Sterling has also slipped further against the US currency to around $1.27 – it was trading at $1.32 as recently as a couple of weeks ago – and is tending to edge down against the single currency too, standing at almost 87.75p this morning

Equities markets started the week on the back foot – with European stocks faring the worst and shedding almost 2% – with trade tensions  between the US and China – this time related the Chinese technology company Huawei – to the fore, though the futures markets point to a more positive start to proceedings this morning

Bond yields in the core markets nudged up yesterday. Their decline over the past while has taken them back to the lows of the year though, with US 10-year yields currently standing at just over 2.40% and equivalent UK yields at 1.05%, while German 10-years are in negative territory at almost -0.10%

Fed Chair Powell notes that “despite crosscurrents, the (US) economy is showing continued growth, strong job creation, and rising wages, all in a context of muted inflation pressures”

Data due today include the Q1 2019 Labour Force Survey here at home, and consumer confidence in the Euro Area, while the OECD publishes its latest Economic Outlook