Quiet start to the week

The Euro got up to touch off $1.14 to the dollar and also gained a little on sterling yesterday. The currency remains in a tight trading range although it is now testing levels last seen in January/February

A quiet day elsewhere – bond yields lost a few basis points and remain at low levels with 10-year bund yields still hovering around -0.3%. In equities, there were just small gains and losses on the day in the main indices with relatively little news to drive sentiment

Oil prices were little changed with a barrel of Brent trading at $64 despite the US hitting Iran with more sanctions – personally targeting Iranian leaders this time – while President Trump has also been complaining about the US protecting other countries tankers in the Gulf of Oman

The IFO index in Germany fell to 97.4 in June while the expectations component also dropped back. This sentiment indicator has been sliding since the second half of last year and is now back at 2014 levels adding to the signs that the German economy is growing weakly at best

Little on the data front today with US home sales and conference board due. However, there is a full slate of central bank speakers among them Guindos and Coeure from the ECB and,  in the US, recent Fed dissenter Bullard is out while Chairman Powell is making a speech on the outlook this evening