Sterling holds steady ahead of Brexit talks

A man looks at an electronic stock quotation board outside a brokerage in Tokyo Japan

A man looks at an electronic stock quotation board outside a brokerage in Tokyo Japan

With inflation stubbornly soft despite a 16-year low in the US unemployment rate, the Federal Reserve should move only slowly to raise interest rates and trim its massive bond portfolio, Chicago Fed President Charles Evans said Monday."I don't want to get hung up over small differences" between whether the Fed raises rates two, three or four times over the course of 2017, Evans said in remarks prepared for delivery to Money Marketeers of New York University.

At 09:50 (AEST), the Australian dollar was buying 75.95 US cents.

The New Zealand dollar recovered some overnight losses after New York Federal Reserve President William Dudley signalled a willingness to gradually increase United States interest rates to support economic growth but the local currency remained range-bound ahead of the overnight dairy auction and the upcoming central bank rate decision and statement Thursday.

The common currency was steady at $1.11965 (EUR=EBS), retaining Friday's 0.5 percent gain. With economists widely expecting the bank to keep rates on hold at 1.75 percent, the short press release will be scoured for any clues on inflation expectations and any guidance on monetary policy. Britain and the European Union's chief negotiators began talks by stressing the need to quickly tackle uncertainties in the process and underlining their constructive attitude to reach a deal that is good for all.

Investor Barometer: Signal watch on Mitie Group PLC (MTO.L)
Many consider the equity oversold if the reading is below -80 and overbought if the indicator is between 0 and -20. The Company is engaged in the property investment, development and trading, and the provision of vehicle parking.

The dollar added 0.1 percent to 111.01 yen (JPY=), after touching a two-week high on Friday. That left it nearly 2.5 percent lower than an eight-month high hit in May on the view that Prime Minister Theresa May's Conservative party would increase its majority in elections on June 8, giving Britain a strong position to negotiate with the EU. It hit a low of $16.575 during the session, its weakest since May 19. It traded at 65.97 euro cents from 65.01 cents and 56.89 British pence from 56.96 pence yesterday.

Dow Jones closed up by 0.65 percent, S&P 500 ended up 0.81 percent, Nasdaq finished the day up by 1.38 percent.

The 10-year notes were last down 4/32 in price to yield 2.17 percent. US gold futures fell 0.4 percent to $1,251.6.

Spot gold was down 0.7 per cent at $US1,244.85 an ounce by 2:35 pm Monday EDT (0435 Tuesday AEST), after falling below the 100-day moving average to $US1,244.27, its lowest since May 17. BrentLCOcv1 settled 1 percent lower at $46.91.

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