Not much change

The main exchange rates are broadly stable this morning with the dollar trading at just below $1.1150 against the euro and at around $1.30 against sterling, leaving the pound in the vicinity of 85.5p against the single currency. Bond yields edged down a little and are now flat to slightly  lower week to date, while equity markets were marginally weaker on the day

The US and China are today expected to formally sign their recently agreed interim trade deal, described by  Donald Trump as a “big beautiful monster” of a deal though he may be prone to exaggeration. It seems from reports that no further reduction in tarriffs, beyond the limited and modest reduction included in the deal, will be contemplated this side of November’s presidential election in the US

The annual rate of CPI inflation in the US rose for a second month in December to end the year at 2.3%, its highest level since October 2018

ECB member Villeroy says the Euro area economy “is certainly giving good signs of stabilisation” although he did add that it was still premature to sound the all-clear

Data due today includes industrial production in the Euro area and CPI inflation and house prices in the UK