Dear Reader,

 

Today's overview of economic news and market action

  • The strong risk-off mood on markets from last week carried through into trading yesterday …
  • Concerns regarding the health of the US economy and the unwinding of the yen carry trade have led to increased levels of volatility …
  • Currency-wise, trading conditions remained volatile, particularly in relation to the yen yesterday …
  • Meantime, the dollar recouped its losses overnight …
  • EUR/USD opens this morning at the midpoint of $1.09-1.10 …
  • GBP/USD is changing hands in the top half $1.27-1.28 …
  • Meantime, EUR/GBP is in the upper half of the 85-86p corridor …
  • USD/JPY is in the ¥145-146 trading band …
  • Turning to the day ahead, Eurozone retail sales for June will be released …
 
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Today's Opening FX Rates
 
      % Change Day* End 2023
EUR/USD 1.0948   0.16 -0.80
EUR/GBP 0.857   0.36 -1.13
GBP/USD 1.2772   -0.22 0.34
GBP/EUR 1.1665   -0.36 1.14
*versus Previous Day's European Open

All rates quoted are indicative market rates.
 
AIB Ireland Manufacturing PMI - July
 

AIB Ireland Manufacturing PMI® indicated a broad stabilisation in operating conditions across the Irish manufacturing sector at the start of the third quarter, thereby ending a four-month period of deterioration. Underlying data hinted at early signs of recovery in demand conditions. Meanwhile, output was raised for the first time since February.
 
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AIB Ireland Services PMI - July
 

AIB PMI® survey data indicated the slowest rise in total activity in the Irish service sector for three months in July, but growth of new business accelerated and the year-ahead outlook improved. Outstanding business increased at the strongest rate in ten months and employment growth picked up from June's recent low. 
 
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ECB Watch - July 2024
 

The ECB meeting for July saw the Governing Council keep its key interest rates unchanged. This means that the Deposit rate remains at 3.75% while the refi rate stays at 4.25%. The ‘hold’ on rates in July follows the 25bps rate cut implemented in June to the main interest rates. This represented its first rate change in six meetings after previously being on a rate hiking cycle.
 
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Federal Reserve Watch - July 2024
 

The US Federal Reserve Open Market Committee (FOMC) meeting for July saw the central bank leave its key interest rate policy unchanged. This decision was very much in line with expectations. The target range for the Fed funds rate remains at 5.25-5.50%, a 22-year high.
 
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Bank of England Watch - August 2024
 

The August meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank lower the Bank rate by 25bps to 5.00%. This was the first rate change from the Bank of England in eight meetings. Subsequent to this, the central bank had been on a rate tightening cycle over the period December’21 to August’23.
 
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