Dear Reader,

 

Today's overview of economic news and market action

  • Trading conditions continued to stabilise during the European session yesterday …
  • Overnight though, risk appetite soured somewhat …
  • On the currency front, the main FX pairs operated in very tight ranges …
  • Of the limited action to note, the euro was marginally firmer and the yen softer …
  • However, the yen recouped its losses and took the ascendancy overnight …
  • Sees USD/JPY start today back near ¥146 …
  • EUR/USD remains in the lower half of the $1.09-1.10 range …
  • GBP/USD continues to change hands near the $1.27 threshold …
  • EUR/GBP is operating in and around 86p …
  • Today, the latest US weekly initial jobless claims data are due …
 
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Today's Opening FX Rates
 
      % Change Day* End 2023
EUR/USD 1.0938   0.25 -0.89 
EUR/GBP 0.8608   0.29 -0.69
GBP/USD 1.2702    -0.02 -0.21
GBP/EUR 1.1612   -0.29 0.70
*versus Previous Day's European Open

All rates quoted are indicative market rates.
 
AIB Ireland Manufacturing PMI - July
 

AIB Ireland Manufacturing PMI® indicated a broad stabilisation in operating conditions across the Irish manufacturing sector at the start of the third quarter, thereby ending a four-month period of deterioration. Underlying data hinted at early signs of recovery in demand conditions. Meanwhile, output was raised for the first time since February.
 
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AIB Ireland Services PMI - July
 

AIB PMI® survey data indicated the slowest rise in total activity in the Irish service sector for three months in July, but growth of new business accelerated and the year-ahead outlook improved. Outstanding business increased at the strongest rate in ten months and employment growth picked up from June's recent low. 
 
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ECB Watch - July 2024
 

The ECB meeting for July saw the Governing Council keep its key interest rates unchanged. This means that the Deposit rate remains at 3.75% while the refi rate stays at 4.25%. The ‘hold’ on rates in July follows the 25bps rate cut implemented in June to the main interest rates. This represented its first rate change in six meetings after previously being on a rate hiking cycle.
 
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Federal Reserve Watch - July 2024
 

The US Federal Reserve Open Market Committee (FOMC) meeting for July saw the central bank leave its key interest rate policy unchanged. This decision was very much in line with expectations. The target range for the Fed funds rate remains at 5.25-5.50%, a 22-year high.
 
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The August meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank lower the Bank rate by 25bps to 5.00%. This was the first rate change from the Bank of England in eight meetings. Subsequent to this, the central bank had been on a rate tightening cycle over the period December’21 to August’23.
 
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