Main exchange rates steady

The main exchange rates are largely steady this morning. The euro continues to hover just above the $1.20 level against the dollar and just below 87p against sterling, while the pound is still trading a touch under $1.39 against the US currency

US stocks edged a little lower again yesterday, as they continue to retreat a bit from all-time highs set at the end of last week, while European equities also closed lower. Bond yields in the core markets dipped a touch, to 1.29% and -0.36% for US and German 10-year yields respectively

Retail sales in the US rebounded strongly in January having fallen in the final couple of months of last year, increasing by 5.3% from December to leave them more than 7% above January 2020 levels. Meanwhile, manufacturing output rose for a fourth consecutive month in January, increasing by 1% from December

The minutes of last month’s Fed meeting, published yesterday, noted that the $900bn stimulus  package passed by Congress last December, the likelihood of additional fiscal support, and “anticipated continued progress in vaccinations would lead to a sizable boost in economic activity” this year and next

Bank of England member Ramsden says the risks to the UK economy are still skewed to the downside and that negative interest rates are still “a live issue”

Data due today include consumer confidence in the Euro Area and jobless claims and housing starts in the US