Main exchange rates steady

The euro gained around a cent and a half against the dollar over the course of last week and kicks off this week trading at just shy of $1.19. The single currency also strengthened against sterling, rising by more than 1.5p to a little under 87p which is where it trades this morning. The pound, meanwhile, also lost ground to the dollar, falling to around $1.37

US government 10-year bond yields retreated last week, falling by almost 10bps to close out Friday trading at around 1.65%, while equivalent German government bonds ended very marginally higher at -0.30%. Equity markets advanced on the week, with the S&P 500 setting a new all-time high on Friday

Fed Chair Powell says the economic outlook in the US “has brightened substantially”, adding that “we’re at a place where the economy is about to start growing much more quickly (with) job creation coming in much more quickly”

ECB member Panetta says “we cannot be satisfied with inflation at 1.2% in 2022 and 1.4% in 2023 (the ECB’s latest forecasts), which are both well below the central bank’s target, suggesting he for one would support further monetary stimulus

Data due this week includes Euro Area retail sales today; UK GDP for February tomorrow; and US CPI inflation tomorrow as well with retail sales and industrial production scheduled for Thursday