Sterling gives up some ground

Sterling has given up some ground against the euro and the dollar, to trade at 88p and $1.35 respectively this morning. This comes amid what RTE News describes as Brexit Border brinkmanship, as talks continue to find a way forward on the Border issue

The euro is trading at just over $1.19 against the dollar, so slightly firmer than it was yesterday morning. Meanwhile, equity markets were mixed, with European stocks closing down on the day but the three main indices in the US averaging gains of just less than 1%, while bond yields in the core markets were unchanged to slightly higher

The annual rate of headline inflation in the Euro area nudged up in November to 1.5%, according to the flash estimate, though the core rate remained at 0.9%, with both coming in slightly shy of market expectations

In the US, the annual rate of inflation dipped to 1.6% in October, while the core rate ticked up to 1.4%. Inflation continues to run below the 2% target, but the Fed expects it to move back up to the target by the end of 2018 and, hence, says it expects to continue gradually raising interest rates next year

Data due today include manufacturing PMIs in the main economies