US ‘payrolls’ report day

The euro is under a bit of pressure this morning, dipping to under $1.1550 against the dollar and to just below 85p against sterling, while the latter has gained some ground against the US currency and is trading back at around the $1.36 level

Bond yields are nudging higher again with US 10-year yields now approaching 1.60% and equivalent German yields trading up to -0.15%, while equivalent UK yields are once again leading the way – they have risen by around 5bps this morning to 1.12%

ECB Chief Economist Philip Lane says “there’s solid reasons to believe that a lot of this (rising inflation in the Euro area) is to do with the reopening of the economy and there’s very solid reasons to believe there’s a significant transitory component”

Bank of England member Huw Pill says the “balance of risks is currently shifting towards greater concern about the inflation outlook, as the current strength of inflation (in the UK) looks set to prove more long lasting than originally anticipated”

Data due today includes the September employment (‘payrolls’) report in the US, with the consensus expecting the economy to have added 500,000 jobs last month and the unemployment to have edged down to 5.1%