Sterling still under pressure

The pound remains under pressure this morning, not hugely so but still knocking on the door of 90p against the euro and hovering around the $1.22 level against the dollar. The single currency has advanced a little against the dollar, moving back above $1.10 earlier this morning. Meanwhile, core bond yields nudged up yesterday as stocks rebounded following two down days on Monday and Tuesday

The EU’s main Brexit negotiator, Michel Barnier, said yesterday there wasn’t the basis for an agreement with the UK at this juncture, though Jean-Claude Juncker said he hasn’t given up on a deal yet,  while Boris Johnson and Leo Varadkar will meet later today for detailed discussions (so as long as their talking there’s hope)

The minutes of the Fed’s September meeting, at which it cut interest rates for a second time in two months, show heightened concern about increasing downside risks to the outlook for the US economy, something that is likely to prompt a third rate cut at its meeting at the end of this month

The ECB’s De Guindos noted yesterday that the central bank delivered a comprehensive package of monetary policy easing measures at September’s meeting, suggesting the ECB will take time to assess its impact before taking any further action. (The minutes of the September meeting are published later today)

Data due today include GDP for the month of August in the UK and CPI inflation in the US