Dear Reader,

Today's overview of economic news and market action:

• • Quiet day on financial markets yesterday …
  • Main FX pairs remained range bound …
  • This morning, UK CPI inflation printed well below the consensus …
  • The data has weighed on sterling in early trading …
  • Sees EUR/GBP operating near the midpoint of 86-87p …
  • GBP/USD is down below the halfway mark of $1.23-1.24 also …
  • The focus today though, will be on the US Fed meeting decision, after the close in Europe ….

Markets Expect ECB Rate Cuts in 2024

Markets are of the view that we have seen the final ECB rate hike, following last Thursday’s 25bps increase, which brought the key deposit rate up to 4%.

ECB Depo rate hits 4%, likely to be the peak

The September meeting of the ECB’s Governing Council saw the Central Bank raise rates by a further 25bps, pushing the key deposit rate up to 4.00%.

Recession Required for Rate Cuts

Markets are of the view that we have seen the last ECB rate hike, following Thursday’s 25bps increase, which brought the key deposit rate up to 4%.

AIB Ireland Services PMI - August

Strong growth in the Irish service sector was sustained during August with the latest AIB PMI® survey data marking exactly two-and-a-half years of successive monthly improvements in business activity, new business, and employment.