Main FX rates little changed

The main currency pairs are not much changed once again this morning. The euro continues to trade a little over $1.16 against the dollar and a touch below 84.5p against sterling, while the pound is hovering in and around the $1.38 level against the US currency

In bond markets, US 10-year yields continue to grind higher and have now reached 1.65% – not far off their 2021 to date high of 1.75% at the end of March – while equivalent German and UK yields are unchanged at -0.13% and 1.15% respectively

The annual rate of CPI inflation in the Euro area was confirmed at 3.4% in September according to the final reading published yesterday, up from 3.0% in August, with the core – or underlying – rate coming in at 1.9% (up from 1.6%)

The pace of growth in the US economy slowed in September through early October according to the Fed’s so -called Beige Book, “constrained by supply chain disruptions, labor shortages, and uncertainty around the Delta variant of COVID-19”

Data due today includes consumer confidence in the Euro area and jobless claims in the US