Dear Reader,

Today's overview of economic news and market action

• There was a quiet start to the week on markets  …
• A US market holiday and a lack of top tier data contributed to the muted price action …
• Currency-wise, the main FX pairs were confined to very narrow ranges …
• Of the limited moves to note, sterling was marginally softer …
• Sees EUR/GBP open at the midpoint of 85-86p …
• GBP/USD is back below the $1.26 threshold …
• EUR/USD is in the top half of $1.07-1.08 …
• Today, BoE testimony at the Treasury Select Committee will garner attention …

The UK economy stuck in stagnation

A plethora of UK data last week provided conflicting evidence on the strength of the economy of late. For the optimists, continuing strength in the labour market and solid retail sales figures for January suggest the UK consumer is recovering some momentum. However, sticky inflation and moribund GDP growth point to a wider malaise in the UK economy.

UK data paint a muddled picture of the economy

A plethora of UK data this week provided conflicting evidence on the strength of the economy of late. For the optimists, continuing strength in the labour market and solid retail sales figures for January suggest the UK consumer is recovering some momentum.

Service sector growth slows to near-three year low

The first batch of AIB PMI® survey data for 2024 signalled a loss of momentum in Irish service sector activity, albeit still extending the current growth sequence that began in March 2021. Rates of expansion in total activity and new business both slowed on the month, with the former rising at the weakest pace in the current upturn.

ECB on hold for third straight meeting

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 4%.