More of the same

It’s a case of more of the same regarding the main exchange rates, with the dollar still holding firm against the euro at around $1.10 and the pound also still holding its own against both the single currency and the dollar trading at  just under 86p and circa $1.2850 respectively. Meanwhile, core bond yields continue to edge lower amid some weak Chinese economic data pointing to a further slowdown in growth in the final quarter of the year (this is also contributing to a soft opening for European stocks this morning)

The Fed Chair, Powell, has reiterated that the US economy is in a ‘good place’ albeit with downside risks to the outlook (including slowing global growth). Similarly, he believes that following the recent reduction in interest rates, monetary policy is now also in a ‘good place’ (albeit one suspects the bar to a further cut is probably lower than the bar to any hike in rates)

The Brexit Party, having announced earlier this week that it would give the Tories a free run in Tory-held seats in the forthcoming election, seems like it will contest seats currently held by Labour and so will be competing with the Conservative for votes in those constituencies (though perhaps watch out for any last minute ‘pact between the them)

Germany has narrowly avoided entering recession with GDP data published earlier this morning showing the economy expanded slightly in the third quarter (by 0.2%) after it had contracted slightly (by 0.1%) in the second quarter (though fundamentally the economy remains weak and is essentially just flatling at present)

Data due today include 2nd estimates of both Euro Area GDP and employment growth in the third quarter of this year; retail sales in the UK; and jobless claims in the US