Dear Reader,

Today's overview of economic news and market action

• Risk appetite was muted yesterday amid newsflow in relation to potential US trade tariffs …
• In terms of fixed income, UK Gilt yields rose sharply along the curve …
• The rise in UK Gilt yields yesterday coincided with a firming in UK futures contracts …
• Despite the hardening in UK rate expectations and the sharp rise in Gilt yields, sterling was on the defensive …
• At the same time, the risk-averse mood provided a supportive backdrop for the dollar …
• As trading gets underway this morning, GBP/USD opens down below the $1.23 mark …
• EUR/USD is changing hands back at the $1.03 handle …
• Elsewhere, EUR/GBP is operating up in the top half of the 83-84p range …
• Meantime, there is a relatively quiet look to the data calendar today …

All rates quoted are indicative market rates.