Markets were in consolidation mode on Tuesday, with world stocks hovering just off record highs, the dollar lifted by coming inflation data and the main volatility gauges all looking reassuringly calm.
In the bond markets, yields on government securities were edging lower ahead of a policy meeting of the European Central Bank and US inflation data, both due on Thursday. The dollar’s index against a basket of six major currencies stood at 90.136, up 0.2% on the day and off the 89.533, 4½-month reached late last month. It has been idling there while investors try to gauge the US recovery and policy response.
Sterling was 0.3% weaker on the uncertainty about the removal of Covid-19 restrictions. The UK government had planned to lift almost all remaining restrictions, but infection rates have started to rise again in recent weeks.