Dear Reader,

Today's overview of economic news and market action

• More subdued tone to investor sentiment yesterday
• Data-wise, the closely watched German Ifo for April was ahead of expectations
• Currency-wise, yen weakness grabbed the headlines
• USD/JPY pushed above the ¥155 threshold
• Elsewhere, action has been less eventful
• EUR/USD has straddled the $1.07 level, EUR/GBP just below 86p
• Today’s data highlights are US GDP and core-PCE for Q1

PMI fell to 49.6 in Mar. The slight decline reflected a fall in new business and output and a sharp drop in sentiment. Meantime, inflationary pressures in the sector continued to build

ECB signals June rate cut on the cards

As widely anticipated, the ECB’s Governing Council meeting for April saw the central bank maintain its key deposit rate at 4%. It marked the fifth consecutive policy meeting that the ECB has kept rates unchanged. There was “consensus” rather than unanimity within the Governing Council on the decision.

Geopolitical Tension to the Fore Once Again

This week was very much characterised by “risk-off” sentiment in markets, as rising geopolitical tensions boosted safe haven assets.