Sterling gains some ground

Sterling has gained some ground against both the dollar and the euro strengthening to over $1.29 and to under 91p respectively, while the euro is consolidating for now just above the $1.17 level against the US currency. Equity markets ended marginally lower yesterday, while core bond yields edged down on the day

Consumer confidence in the US dipped in July after recovering from April’s low in May and June according to the Conference Board, which noted ” large declines (in sentiment) were experienced in Michigan, Florida, Texas and California, no doubt a result of the resurgence of COVID-19, (while) looking ahead, consumers (generally) have grown less optimistic about the short-term outlook for the economy and labour market”

ECB member Stournaras says that while “it is true that we observed a trough (in activity) in April”, risks to the Euro area economy “are on the downside”

The Fed announces its latest policy decision today and, having acted early in the crisis to support the US economy, is likely to again keep both interest rates and the pace of its monthly bond purchases unchanged

Data due today includes mortgage approvals and consumer credit in the UK and the trade balance the US