Dear Reader,

Today's overview of economic news and market action:

• Cautious tone to investor sentiment continued yesterday …
• On the currency front, the dollar was somewhat firmer …
• Sees EUR/USD open back towards the midpoint of $1.06-1.07 …
• GBP/USD is operating down at the $1.24 mark …
• EUR/GBP remains in and around 86p …
• Quiet data schedule ahead today …

Growth in services activity remains marked

Ongoing demand strength continued to support sustained growth in the Irish service sector during May, according to the latest AIB PMI® survey data. Activity and new business both rose sharply, albeit at rates slightly weaker than seen in April, and business sentiment strengthened on the month.

Inflation on the Wane

Thereafter, the pace of decline in inflation is likely to slow considerably, but the signs are still that the headline rate will have moved significantly lower by the summer of 2024.

Inflation in Retreat

Inflation is clearly on the wane in Ireland, in line with the trend in most other economies. Preliminary data for May show that prices rose by 0.3% in the month, with the annual rate of HICP inflation falling to 5.4%.