Dear Reader,

Here is an overview of today's economic news and market action:

• Cautious mood on markets ahead of Fed policy decision yesterday …
• Overnight, the Fed hiked rates by 25bps …
• The dollar was on the defensive following the Fed policy announcement …
• Sees EUR/USD open just above $1.09 …
• GBP/USD is operating in the lower half of $1.23-1.24 …
• EUR/GBP is at the midpoint of 88-89p …
• Today focus turns to the Bank of England …
• Markets are pricing in a 25bps rate hike from the BoE …

The Eurozone is Ireland’s biggest trading partner, accounting for circa 35% of goods and 30% of service exports. Thus, the health of this large economy is important for Ireland. The Eurozone economy lost considerable momentum in the second half last year. GDP stagnated in the fourth quarter of 2022, having expanded by 0.4% and 0.9% in the previous two quarters.

Down, but Not Out

• The Eurozone is Ireland’s biggest trading partner, accounting for circa 35% of goods and 30% of service exports
• Encouragingly, survey data suggest that the Eurozone economy has regained some momentum so far this year, helped by a fall in wholesale energy prices and supportive fiscal policies

Click the link to listen to AIB Market Talk featuring discussions with our Economists and Treasury experts, providing you with specialist insight into the prevailing topics impacting Financial Markets.

The March meeting of the ECB’s Governing Council saw the central bank raise rates by 50bps, which brings the key deposit rate up to 3%. 

Watch our video to learn the key features of a Forward Contract and how it will help provide you with greater certainty on profit margins