Dear Reader,

Today's overview of economic news and market action

• The cautious tone to investor sentiment on financial markets continued yesterday …
• Currency-wise, the dollar maintained the upper hand yesterday …
• Elsewhere, sterling was on the defensive following remarks by BoE Governor Bailey …
• However, sterling moved off its lows overnight …
• GBP/USD opens this morning at the midpoint of the $1.31-1.32 range …
• EUR/GBP is changing hands in the upper half of the 83-84p corridor …
• EUR/USD remains in the lower half of the $1.10-1.11 …
• Today the main release of will be the US labour market report for September …

All rates quoted are indicative market rates.

Irish services activity increased at the strongest rate in six months in September as cost pressures eased, the latest AIB PMI® survey data showed. Growth of both new business and employment moderated, coming in slightly below their long-run trends, but outstanding work increased solidly and the 12-month outlook rebounded since August.

Irish manufacturers experienced another decline in new work during September, driven by the fastest fall in export sales for five months. Subdued customer demand led to a renewed decline in production volumes and cutbacks to staffing numbers.

Budget 2025 is set against exceptional budget surpluses. The starting point is a nearly €24bn surplus in 2024, including windfall proceeds from Apple Judgement of €14bn this year. The budget surplus is forecast to be €23.7bn in 2024 (7.5% of GNI*), and €9.7bn in 2025 (2.9% of GNI*). However, excluding windfall receipts, the Government will run significant deficits in the coming years