Dear Reader,

Today's overview of economic news and market action:

• • ECB hiked by 25bps, raising Depo rate to 4%
  • But euro weakened post-ECB on signs rates may have peaked
  • Dollar boosted by forecast beating US macro data
  • EUR/USD below $1.07
  • Elsewhere, EUR/GBP trading in a narrow range just below 86p
  • Today’s macro highlights are US industrial production and consumer sentiment

ECB Depo rate hits 4%, likely to be the peak

The September meeting of the ECB’s Governing Council saw the Central Bank raise rates by a further 25bps, pushing the key deposit rate up to 4.00%.

AIB Ireland Services PMI - August

Strong growth in the Irish service sector was sustained during August with the latest AIB PMI® survey data marking exactly two-and-a-half years of successive monthly improvements in business activity, new business, and employment.

Top Dollar

Although the US dollar has retreated from last year’s peaks, which saw it reach its highest point on a trade-weighted basis in 20 years, it has remained at very elevated levels in 2023.

Some Buck

Although the US dollar has retreated from last year’s peaks, which saw it reach its highest level on a trade-weighted basis in 20 years, it has remained at very elevated levels in 2023.