Dear Reader,

 

Today's overview of economic news and market action

  • As had been widely anticipated, the ECB left monetary policy on hold yesterday …
  • Furthermore, the ECB provided no specific guidance on the near-term path for rates …
  • Against this backdrop, the market reaction to the ECB policy decision was limited …
  • Currency-wise, the main FX pairs operated in relatively narrow ranges …
  • USD/JPY up above the ¥157 threshold …
  • EUR/USD is operating below the $1.09 handle …
  • GBP/USD is changing hands in the $1.29-1.30 range …
  • Meantime, EUR/GBP remains in and around the 84p mark …
  • Remarks from a number of Fed speakers will warrant attention today …
 
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Today's Opening FX Rates
 
      % Change Day* End 2023
EUR/USD 1.0878   -0.49 -1.43
EUR/GBP 0.8421   0.17 -2.85
GBP/USD 1.2915   -0.66 1.46
GBP/EUR 1.1868   -0.17 2.93
*versus Previous Day's European Open

All rates quoted are indicative market rates.
 
 
ECB Watch - July 2024
 

The ECB meeting for July saw the Governing Council keep its key interest rates unchanged. This means that the Deposit rate remains at 3.75% while the refi rate stays at 4.25%. The ‘hold’ on rates in July follows the 25bps rate cut implemented in June to the main interest rates. This represented its first rate change in six meetings after previously being on a rate hiking cycle.
 
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Weekly Market Brief: 15 - 19 July
 

Goldilocks? Government sets Budget parameters

 

The recently released Summer Economic Statement set the boundaries for the upcoming Irish Budget in October, with the Government announcing a planned budget day package of €8.3bn (3% of GNI*). The majority of this is for spending measures (€6.9bn) with the remainder (€1.4bn) expected to fund income tax cuts.
 
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