Little change all round

The main exchange rates are little changed this morning. The euro is still trading above the $1.21 level against the dollar and just below 88p against sterling, while the pound is hovering just above $1.38 against the US currency

Equity markets in Europe and the US again ended largely flat yesterday while bond yields in the core markets nudged down a little, to -0.44% and 1.13% in the case of German and US 10-year yields respectively

The annual rate of CPI inflation in the US remained steady at 1.4% in January according to data published yesterday, while the core (or underlying) rate dipped to 1.4% from 1.6% in December

The Chair of the Fed, Jerome Powell, says the US is still far from having a “strong labour market“, adding that achieving full-employment would require more than continued “supportive monetary policy”, which suggests he favours further fiscal stimulus for the economy

Many small firms in the UK are facing an “existential” threat, according to the British Chambers of Commerce, as they struggle with obstacles to trade with the EU – e.g. extra documentation, higher costs, and delays to shipments – following the end of the Brexit transition period at the end of last year and with new trading arrangement now in place

Data due today includes jobless claims in the US, while the European Commission publishes updated economic forecasts for the EU/Euro Area