Euro still hovering around $1.08

The euro is hovering around the $1.08 level against the dollar, which is the top of the range of $1.04 to $1.08 it has occupied for the most part in 2017 to date. The on-going improvement in the Euro area economy, indications from the ECB that no additional monetary policy stimulus is likely to be required, and some easing of market concerns about the French election have helped underpin the single currency lately,  which has gained around 3 cents against the dollar over the  past three weeks.

Stronger than expected inflation data in the UK earlier in the week gave sterling a lift, while today sees the release of retail sales data for February. Sales have been weak recently falling in each of the three months to January, though the consensus expectation is that there was a small increase last month

Oil prices remain under pressure with Brent crude slipping below $51. This is some 11% off this year’s highs, which if sustained may arrest, or slightly reverse, the rise in headline inflation seen in the main economies in recent months

In the US, equity markets recovered a little ground yesterday after shedding more than 1% on Tuesday, and bond yields edged lower, while the market will be keeping an eye on today’ s vote on the healthcare bill in Congress

Other data due today include consumer confidence in the Euro area and jobless claims and new home sales in the US