Dear Reader,

Today's overview of economic news and market action:

• • Equity markets maintained upward momentum yesterday …
  • Currency-wise, the dollar was in the ascendancy for most of the day …
  • However, weaker than anticipated US data weighed heavily on the dollar …
  • This sees EUR/USD open this morning in the top half of $1.08-1.09 … 
  • GBP/USD is changing hands above the $1.26 handle … 
  • EUR/GBP is trading up at the 86p threshold …
  • Today, a busy data schedule includes flash HICP inflation in Spain and Germany …

PMI declined to 47.0 in July, as business conditions softened for a fifth consecutive month. New orders, and output fell. Meantime, there was a further easing in price inflation

Economic data, especially on labour markets, have generally surprised to the upside to date in 2023. Global economy, though, still facing considerable headwinds, with risks to the downside.

Still Flashing Amber

Surging inflation combined with a marked tightening of monetary policy, amid an environment of weakening confidence levels and heightened geo-political tensions, especially in relation to Ukraine, saw the world economy slow sharply during 2022

Downside Risks Still Prevail for Global Economy

Surging inflation combined with a marked tightening of monetary policy, amid an environment of weakening confidence levels and heightened geo-political tensions, especially in relation to Ukraine, saw the world economy slow sharply during 2022. However, concerns that advanced economies could be facing a recession in 2023 have largely abated.