Dear Reader,

Today's overview of economic news and market action:

• Mixed mood on markets yesterday …
• Sovereign bond yields rose by 4-9bps in the US UK and Eurozone…
• Currency-wise, the main FX pairs were range bound …
• However, dollar was ion the ascendancy overnight …
• Sees EUR/USD open this morning below $1.07 …
• GBP/USD is back in the lower half of $1.23-1.24 …
• EUR/GBP remains in the upper half of 86-87p …
• Quiet data schedule ahead once again today …

Singing from the Same Hymn Sheet 

We have seen big movements in bond and equity markets so far this year, with considerable volatility also, amid mixed signals from economic data and changes in expectations on the outlook for interest rates.

Fed holds rates steady at 22-year high for second meeting

The Fed has enacted 525bps worth of rate increases since it commenced tightening policy in March 2022. The last rate rise came in July, with a 25bps hike.

BoE holds rates at 5.25% for a second straight meeting

This decision was very much in line with market expectations. It marks the second meeting in-a-row where the BoE has remained on hold. Its previous meeting in September represented its first pause after hiking for fourteen consecutive meetings, dating back to December 2021. 

Service sector growth loses further momentum in October

Growth of services activity in Ireland was sustained at the start of the final quarter of 2023, according to the latest AIB PMI® survey data. That said, the rate of expansion slowed for the sixth month running and was the second-weakest over the current 32-month upturn.