Sterling a touch softer

The pound is trading a little weaker against both the dollar and euro this morning at just under $1.41 and close to 86.5p respectively, while the single currency continues to hover below the $1.22 level against the dollar

Bond yields edged down further yesterday with US 10-year yields closing below 1.50% and equivalent German yields ending at -0.25%. Equity markets, meanwhile, were largely unchanged on the day

The ECB announces its latest monetary policy decision today and is likely to maintain the current pace of its monthly bond purchases in order to preserve favourable financing conditions. It is also likely to upgrade its forecasts for both growth and inflation in the zone

The CPI report for May is due in the US later. The annual rate of CPI inflation accelerated sharply in April to a near 13-year high of 4.2% (from 2.6% in March) and is expected to have picked up further last month to 4.7%, according to the consensus forecast

Other data scheduled for include jobless claims and real hourly earnings in the US