US inflation higher again

The euro is little changed against the dollar this morning as it continues to trade just below the $1.22 level, while sterling has regained ground against both the US currency and the euro to trade just shy of $1.42 and at about 86p respectively

US bond yields fell again yesterday notwithstanding another notable pick up in (US) inflation with 10-year yields closing around 6bps lower at 1.43%. Meanwhile, equivalent German yields ended the day marginally lower at -0.26%

The ECB left policy on hold following yesterday’s meeting, saying that “over the coming quarter” it would continue its monthly bond purchases “at a significantly higher pace than during the first months of the year”. It also revised up its forecast for inflation this year to 1.9% but still sees it well below target in 2023 at 1.4%

The annual rate of consumer price inflation in the US rose further in May to 5.0%, the fastest pace of increase in prices since August 2008, while the core, or underling, rate of inflation picked up to 3.8%, its highest level in 30 years

GDP in the UK rose for a third consecutive month in April according to data published earlier this morning, increasing by 2.3% from March leaving it 27.6% above its very depressed level in April last year

Data due today includes consumer confidence in the US