Dear Reader,

Today's overview of economic news and market action:

• • Cautious start to the week on European markets yesterday
  • This was against the backdrop of the escalation in the Middle East conflict
  • Currency-wise, the main pairs were confined to narrow ranges 
  • FX Majors open this am fairly similar to 24 hours earlier
  • EUR/USD is trading near midpoint of $1.05-1.06 
  • EUR/GBP remains within the 86-87p band
  • Today’s macro data diary is lacking in top tier releases

The Road to Damascus

The ‘higher for longer’ outlook for interest rates has been the key factor behind major movements in financial markets in recent weeks. 

Inflation on Downward Path

The ‘higher for longer’ outlook for interest rates has been the key factor behind the big movements in financial markets in recent weeks. 

Growth in services activity slowest since start of 2023

The latest AIB PMI® survey data signalled sustained growth in the Irish service sector in September, with further solid increases in total activity and new business.

Renewed downturn in manufacturing performance as lower export sales hit total order books

Subdued global demand conditions and customer destocking were factors holding back new business intakes. As a result, export sales resumed their downward trend in September, largely driven by falling spending by European clients.