Dear Reader,

Today's overview of economic news and market action:

• • Slightly positive tone to investor sentiment yesterday … 
  • EZ inflation fell below the consensus, while US inflation eased in-line with expectations …
  • Currency-wise, the euro was under downward pressure …
  • Sees EUR/USD open near $1.09 … 
  • EUR/GBP is in the lower half of 86-87p … 
  • GBP/USD is changing hands close to the midpoint of $1.26-1.27 …
  • Today, remarks from ECB president Lagarde and Fed Chair Powell will garner attention …

Latest survey data from the AIB Ireland Manufacturing PMI® highlighted a stabilisation in overall business conditions, following modest downturns in September and October.

Fed holds rates steady at 22-year high for second meeting

The Fed has enacted 525bps worth of rate increases since it commenced tightening policy in March 2022. The last rate rise came in July, with a 25bps hike.

BoE holds rates at 5.25% for a second straight meeting

This decision was very much in line with market expectations. It marks the second meeting in-a-row where the BoE has remained on hold. Its previous meeting in September represented its first pause after hiking for fourteen consecutive meetings, dating back to December 2021. 

Best in class

This week, the focus will firmly be on inflation in the US, where the latest PCE inflation figures are due for release.