Sterling edging higher

The market appears to be betting on a Boris Johnson majority government after the forthcoming election with the pound continuing to edge higher against both the euro and the dollar. At around 85.5p against the single currency, sterling is now within a whisker of its 2019 high of just under 85p set in March, while it is knocking on the door of $1.29 against the dollar. Meanwhile the latter continues to hover in and around the $1.10 level against the euro

Bond yields in the core markets have eased back this week, after rising sharply last week, and are sensitive to reports on the likelihood of a ‘phase one’  trade deal being agreed between the United States and China. Benchmark 10-year yields in the US have fallen back by around 10bps to 1.83%, while equivalent German yields are also about 10ps lower at -0.34%

The Euro Area economy grew by 0.2% in the third quarter (from Q2) according to the second estimate of GDP (confirming the initial estimate), and employment rose (by 0.1%) though the pace of jobs growth has slowed recently

Retail sales in the UK dipped in October, the second month-on-month decline in three months, and the underlying pace of growth in retail spending has clearly moderated from earlier in the year

Data due today include retail sales and industrial production in the US