Pound bounces amid sharp dollar sell-off – business live

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The pound has a spring in its step this morning, hitting a two-week high against the dollar of $1.3252.

Sterling is benefitting from a sharp sell-off of the dollar triggered by reports in the US that special counsel Robert Mueller served President Trump’s election campaign a subpoena in mid-October, requesting documents relating to Russia.

As CMC Markets’ Michael Hewson explains, positive sentiment earlier in the day (generated by the passing of a bill in the House of Representatives aimed at cutting US company rates from 35% to 20%), quickly evaporated:

The passing of yesterday’s bill helped the US dollar close near its intraday peaks yesterday, while also helping push up US yields with the 2 year yield hitting its highest level since October 2008.

These US dollar gains were pretty short-lived and soon gave way to selling on reports that Trump officials had been subpoenaed by special attorney Robert Mueller as part of the investigation into Russian involvement in the Trump Presidential campaign.

This sent the US dollar sharply lower against the yen, dragging on the Nikkei as well as pushing the euro above 1.1800 and the pound to a two week high above 1.3200.

The pound is currently up 0.3% at $1.3229 and is up 0.1% against the euro at €1.1223.

The dollar index – which measures the greenback against a basket of other major currencies – is down 0.2%.

Also coming up today…

8.30am GMT: Mario Draghi, president of the European Central Bank, is giving a keynote speech at the European Banking Congress in Frankfurt

1.30pm GMT: Housing starts data for October will give the latest snapshot of the US property market