Pound firmer

Sterling has recovered ground against both the euro and the dollar to trade at close to 90.5p and $1.24 respectively this morning, while the single currency continues to hover around the $1.12 level against the dollar. Equity markets advanced again yesterday, fully reversing the losses they chalked up last week in the process, while core bond yields were a touch higher as a result

The annual rate of CPI inflation in the Euro Area ticked up to 0.3% in June according to the flash reading published yesterday, but the core (or underlying) rate nudged down to 0.8%. In any case, both are running well below where the ECB would like to see them

House prices in the UK fell for a second month running in June, the Nationwide reports, dropping by 1.4% from May and leaving them marginally below (-0.1%) their level in the same month in 2019, the first negative year-on-year reading since late 2012

Consumer confidence in the US rose for a second month running in June based on the Conference Board’s survey, with respondents assessment of current and future economic and labour market conditions improving, but it still remains well off its pre COVID-19 level

Data due today include manufacturing PMIs in the main economies and the ADP employment report in the US, while the Fed publishes the minutes of its recent meeting