Pound regains some ground

The euro is not much changed against the dollar this morning at just over $1.17 but sterling has regained some ground against both the single currency and the US currency to trade at close to 90p and at just over $1.30 respectively. Equity markets in both Europe and the US closed marginally down yesterday while core bond yields continued to drift lower with German and US 10-year yields now at -0.60% and 0.70% respectively

European leaders will “take stock” of the negotiations with the UK at their two-day summit which starts today as Prime Minister Boris Johnson says he’s “disappointed” with the progress to date, though it does seem that the two sides will continue to work to try and reach an agreement over the coming weeks

Industrial production in the Euro Area rose for a fourth consecutive month in August though the increase of 0.7% was much more modest than in the prior three months, while output was still some 7% lower than in August 2019

ECB member Villeroy says the central bank’s “present very accommodative monetary policy stance” remains appropriate” but it has to be ready to act again if needed

The annual rate of residential price inflation in Ireland was in negative territory for a second consecutive month in August remaining at -0.6%

Data due today includes jobless claims and import prices in the US