Dear Reader,

Today's overview of economic news and market action

• The subdued tone to investor sentiment continued yesterday …
• A limited macro calendar contributed to the lacklustre price action once again …
• The main FX pairs were confined to quite narrow trading ranges, amid the muted release schedule …
• As trading gets underway this morning, EUR/GBP opens at the 85p threshold …
• GBP/USD remains in the top half of the $1.27-1.28 corridor …
• EUR/USD is operating near to the midpoint of the $1.08-1.09 band …
• Turning to today, the main release will be the flash estimate of German HICP inflation for May …

World economy continues to exhibit resilience. However, subdued growth expected again in 2024, with US outperformance starting to wane, UK and Eurozone accelerating. Inflation remains sticky in key markets, particularly the US and UK, with consumer spending underpinning high core inflation, and higher oil prices a renewed inflationary risk.

Hot Irish Labour Market Coming Off the Boil

Irish labour market expanded at a more moderate pace in Q1, but the data still point to robust growth in the Irish economy at the start of 2024. Employment increased by 0.4% in the quarter, but the annual growth rate slowed to 1.9% y/y (+3.4% y/y in Q4 2023).