Sterling consolidating for now

Sterling is consolidating for now around the 85p level against the euro and at about $1.32 against the dollar. The dollar is largely unchanged against the euro, trading just below $1.13

US government bond yields nudged higher  on the back of better than expected economic data and ahead of a speech by the Fed Chair, Janet Yellen, today

Equity markets were a touch softer with Europe off around 0.5% and US indices down around 0.2%

US data published yesterday showed a second consecutive month-on-month increase in capital goods orders in July, which points to an increase in investment in Q3 following falls in each of the three quarters to Q2

Janet Yellen speaks at the annual Fed conference in Jackson Hole today and may signal that an increase in interest rates is probable before the end of this year

Data due today includes second estimates of Q2 GDP in the UK and the US.