Dear Reader,
Today's overview of economic news and market action:
- Geopolitics, US tariff uncertainty & plans to raise fiscal spending in Germany/EU impacted markets last week …
- Against this backdrop, trading conditions were volatile across a number of different asset classes …
- Most notably, German Bund 10-year yields rose by over 40bps on the week …
- Meantime, the euro was firmly in the ascendency on currency markets …
- At the same time, the dollar was under some downward pressure …
- This is reflected by EUR/USD opening this morning up in the $1.08-1.09 range …
- GBP/USD is operating above the $1.29 mark …
- USD/JPY is down at the midpoint of ¥147-148 …
- Elsewhere, EUR/GBP is in and around the 84p handle …
- Geopolitics and tariff related newsflow are likely to remain in focus again this week on markets …
- In terms of the key releases, the main highlight will be US CPI inflation for February …
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Today's Opening FX Rates
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% Change Day* |
End 2024 |
| EUR/USD |
1.0836 |
|
0.22 |
4.67 |
| EUR/GBP |
0.8391 |
|
0.01 |
1.43 |
| GBP/USD |
1.2909 |
|
0.21 |
3.18 |
| GBP/EUR |
1.1912 |
|
-0.01 |
-1.41 |
| *versus Previous Day's European Open |
All rates quoted are indicative market rates.
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ECB Watch - March 2025
The March meeting of the ECB Governing Council saw the central bank cut interest rates for a second consecutive time this year. It reduced them by 25bps, with the Deposit rate lowered to 2.50%, while the Re-fi rate was decreased to 2.65%. This marked the sixth 25bps rate cut since the ECB started its easing cycle last June.
Irish Economy Watch - February 2025
- Manufacturing PMI rose to 51.3 in January, indicating a first monthly expansion since October
- The services PMI fell to 53.4 in January, consistent with a slower pace of expansion
- Retail sales were 0.4% lower YoY in December
- Housing commencements 12 month running total at 60.6k in January
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