Main exchange rates steady

There’s not a whole lot to report from the foreign exchange markets this morning with the main currency pairs trading in very tight ranges. The euro is hovering in and around the $1.10 level against the dollar and at just over 85p to the pound, while the latter is trading at $1.29 against the dollar, which is just a little weaker than this time yesterday. It is a similar story in relation to bond yields in the core markets, with German 10-year yields little changed at just under -0.40% and equivalent UK yields also steady at just under 0.70%

The European Commission’s measure of economic sentiment in the Euro Area rose for the first month in three in November, with confidence amongst firms in both the manufacturing and services sector improving from October,  and though it has fallen steadily over the past couple of years it still remains above its long-run average level

The annual rate of CPI inflation in Germany picked up in November, rising to 1.2% (from 0.9% in October), which is its highest level since June this year, while inflation also picked up in France this month, also to 1.2%

The ECB’s Philip Lane says interest rates in the Euro Area could starting returning to normal more quickly if governments (that have room) did more to support their economies via expansionary fiscal policy

Data due today includes CPI inflation and unemployment in the Euro Area, while in the UK mortgage approvals are published by the Bank of England