Main exchange rates steady

The main exchange rates are largely steady this morning with the euro trading at around $1.1850 against the dollar and sterling trading at just under $1.29 against the US currency, leaving the euro-pound rate at about 92p (which is marginally lower than yesterday morning). European and US stocks both closed in positive territory yesterday, though their gains were very modest, while core bond yields were unchanged

ECB member Panetta says “the results achieved by our monetary-policy measures are…not fully satisfactory yet, as price pressures and inflation expectations are expected to remain subdued” (which suggests further stimulus will be needed)

The annual rate of CPI inflation in the UK fell to 0.2% in August from 1.0% in July, partly reflecting a reduction in prices in restaurants and cafes last month arising from the government’s “Eat Out to Help Out” incentive scheme

The Fed is expected to leave policy on hold at the conclusion of today’s meeting while reiterating its commitment to using “its full range of tools to support the U.S. economy”. It will also publish updated forecasts which may show it expects the economy to contract by less this year than previously expected

Data due today includes retail sales in the US