Main currency pairs steady

The euro and sterling are little changed against the dollar this morning trading at around $1.06 and $1.20 respectively, which in turn sees the single currency-pound exchange rate still hovering just above 88p

In government bond markets, German 10-year yields fell by by more than 10bps yesterday to close at about 2.25% but they have moved back above 2.30% in early trading this morning, while equivalent US yields are sitting just above 3.70%

The minutes of the Fed’s December meeting, at which it raised interest rates by 50bps, note that “further  (rate) increases…would be appropriate”

The number of mortgage approvals for house purchase in the UK fell sharply in November, a continuing fallout from September’s ill-fated mini budget which sent mortgage interest rates soaring

In Ireland, the Exchequer recorded a surplus of €5 billion in 2022, a €12.4 billion swing from the €7.4 billion deficit recorded in 2021 reflecting strong growth in tax revenue (+22%) and a decline in Covid-related public expenditure

Economic data due today includes producer prices in the Euro area and jobless claims in the US