Main currencies not much changed

The main currency pairs are not much changed this morning with the euro still hovering just below $1.18 against the dollar and sterling trading just under $1.38 against the US currency, which leaves the pound marginally firmer against the euro at about 85.5p

European equity markets closed slightly lower yesterday and are down a touch again at the start of today’s session, while the main US stock indices ended broadly flat yesterday

The soft opening to stocks this morning also sees bond yields edging down. German 10-year yields have dipped to around -0.45% and equivalent US yields have fallen to about 1.25%

Oil prices have now retraced most of the fall that occurred in the early part of last week with Brent crude up around $5 since then to $74 per barrel (and so not far off its 2021 to date high of $77 p/b)

Outgoing Bank of England MPC member, Gertjan Vlieghe, says he thinks “it will remain appropriate to keep the current monetary stimulus in place for several quarters at least, and probably longer”, adding that “when tightening does become appropriate, I suspect not much of it will be needed”

Data due today includes consumer confidence and house prices in the US