Sterling holds on to gains

Sterling is holding on to its latest gains as the UK parliament overwhelmingly approved the general election for June 8th, with the currency continuing to trade below 84p against the euro and at over $1.28 against the dollar. An EU Commission spokesperson says Brexit negotiations will start after the election, adding that negotiations were to start in June regardless of the election

The euro is little changed against the dollar as it continues to hover just above $1.07. US bond yields rose, reversing some though not all of Tuesday’s pronounced fall, while oil prices have given up some ground with Brent down a couple of dollars to c.$53 p/b

Euro area inflation was confirmed at 1.5% in March (down from 2% in February) and the core rate  at 0.7% (down from 0.9%)

ECB Executive Board member Coeure says asset purchases (QE) will continue until December next or beyond if necessary and that interest rates will not be ‘lifted’ until well after asset purchases end, with ‘no reason today to change that sequence’

Data due today include consumer confidence in the Euro area and jobless claims in the US