Dear Reader,

Today's economic news and market action:

• Markets were sensitive to key data releases last week
• Reflected in a further hardening in rate hike expectations
• Meanwhile, risk appetite waned amid prospect of interest rates ‘higher for longer’
• Currency-wise, the dollar was in the ascendancy
• EUR/USD opens this morning below $1.06
• EUR/GBP remains down near 88p
• This week’s macro highlights include EZ inflation, ECB minutes and US ISMs

Watch our video to learn the key features of a Forward Contract and how it will help provide you with greater certainty on profit margins 

Keep on Rocking in the Rate World

The shift by central banks to smaller rate hikes is not a signal that monetary tightening is about an end.

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The UK economy has become a marked underperformer, a record that stretches back to the start of the pandemic in 2020 and Brexit. UK GDP fell by a whopping 11% that year, compared to much smaller declines of 6.3% for the Eurozone and 2.8% in the US. It was hoped that this gap would be closed by a much stronger rebound by the UK economy in 2021-2022.

AIB's Economic Research Unit provides regular commentary on the domestic and global economy, currency and interest rate markets, and special commentary on key events...