Dear Reader,

Today's overview of economic news and market action:

• • Mixed mood on markets yesterday …
  • Bond yields rose across the board, most notably in the US …
  • Main FX pairs range bound yesterday, but dollar strengthens overnight …
  • Sees EUR/USD open this morning in the bottom half of $1.05-1.06 .. 
  • GBP/USD is back below the $1.21 threshold also … 
  • EUR/GBP remains above the 87p mark …
  • Today, the ECB is widely expected to leave policy on hold …
  • Busy US schedule includes US GDP (Q3) & durable goods (Sep)

 Strong Public Finances

Today’s budget contained a fresh package of cost of living support measures totalling €2.7bn that will be rolled out over the winter months. These are mainly taking the form of direct household payments and energy credits. The Government is also providing an additional €6.4bn in other spending increases and tax cuts for next year. 

PMI declined to 49.6 in Sep, indicating business conditions deteriorated slightly. New orders fell, including export orders. Output contracted for a seventh month running.

Back in the Pack

Fears that the UK could have entered recession by now have not come to pass, with the economy displaying unexpected resilience over the past year.