Dollar on the back foot

The euro and sterling have both advanced against the dollar to trade at over $1.19 and close to $1.34 respectively this morning, leaving the single currency trading marginally firmer against the pound at just over 89p. Bond yields in the core markets nudged higher again yesterday as stocks chalked up solid gains

The news that Janet Yellen, a former chair of the Federal Reserve, is to be the new Secretary of the Treasury in Joe Biden’s administration seems to have pleased equity markets, with stocks in the US closing more than 1% higher yesterday and European indices following suit

ECB President Christine Lagarde says that by taking “decisive” action, policymakers “can defend businesses that will be viable once the (public health) restrictions are removed, and…can also protect those jobs that have no reason to be destroyed”

Rising virus cases may have weighed on consumer confidence in the US this month, with the Conference Board’s measure falling quite sharply in November though it remains off its lows in the spring

Data due today include jobless claims, consumer spending and PCE inflation in the US, while the Chancellor of the Exchequer in the UK presents the annual spending review