Dear Reader,

 

Today's overview of economic news and market action:

  • Risk appetite was holding a firmer tone throughout the European session yesterday …
  • Data-wise, the flash PMIs broadly improved and printed above the consensus in January …
  • Amid the positive mood on markets, the dollar was on the defensive …
  • However, the greenback recouped some of its losses late on yesterday …
  • EUR/USD opens in the top half of $1.08-1.09 …
  • GBP/USD is in the lower half of $1.27-1.28 …
  • EUR/GBP is at the midpoint of 85-86p …
  • Today, the main focus will be the ECB meeting …
  • In the US, first reading of Q4 GDP and core-PCE inflation will feature …
 
Continue Reading
 
Today's Opening FX Rates
 
    % Change
      Day* End 2022
EUR/USD 1.0885   0.23 -1.37
EUR/GBP 0.8553   0.05 -1.33
GBP/USD 1.2721   0.17 -0.06
GBP/EUR 1.1682   -0.05 1.34
*versus Previous Day's European Open
 
Economist's Weekly Market View
 

Markets and central banks remain at odds on the path for interest rates

 

Further significant declines in inflation rates look to be in store this spring virtually everywhere, as large price increases a year earlier drop out of the annual comparison.
 
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Weekly Market Brief: 22-26 January
 

Play it Again Sam

 

The most notable feature of the main currency markets over the past year or so has been the predominance of narrow trading ranges, with the exception of the yen, which has fallen sharply.
 
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Forex and Interest Rate Outlook - January
 

World economy grew at a very modest pace in 2023. Subdued growth expected again in 2024, with continuing weak performance by most advanced economies in particular. Inflation fell sharply last year and further moderation in price pressures anticipated in 2024.
 
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AIB Ireland Manufacturing PMI® - December 2023
 

Renewed downturn in manufacturing order books, but business optimism improves slightly

 

The AIB Ireland Manufacturing PMI® pointed to worsening business conditions as 2023 drew to a close, representing a setback after the stabilisation seen during November.
 
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