Dear Reader,

Today's economic news and market action:

• Sentiment supported by a fall in US inflation last week …
• S&P 500 gained 2.7%, Euro Stoxx 50 outperformed 3.3% …
• Currency-wise, the dollar was on the defensive …
• Yen on the front foot also …
• Reflected by USD/JPY falling to near ¥128 …
• EUR/USD opens this week above $1.08 …
• GBP/USD is operating above $1.22 …
• EUR/GBP changing hands at the midpoint of 88-89p …
• BoJ meeting, ECB meeting account due this week …
• UK data (inflation and labour market) also in focus …

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After decades of price stability, the return of inflation was one of the big stories of 2022. CPI rates hit forty year highs, reaching double-digit levels in many countries, resulting in a marked tightening of monetary policy and a sharp slowdown in economic activity.

Historic FX and interest rates for 2022

AIB's Economic Research Unit provides regular commentary on the domestic and global economy, currency and interest rate markets, and special commentary on key events...