Dear Reader,

Here is an overview of today's economic news and market action:

• Risk averse tone to investor sentiment last week …
• A deal to raise the US debt ceiling limit was struck at the weekend …
• The dollar was holding in the ascendancy last week …
• Sees EUR/USD open this morning down in the lower half of $1.07-1.08 …
• GBP/USD is operating near the midpoint of $1.23-1.24 …
• EUR/GBP remains just below the 87p threshold …
• Quiet data schedule ahead today, with a market holiday in the SU and most of Europe …
• Later this week, Eurozone flash HICP inflation (May) and the US labour market report (May) are due ….

PMI eased back to 48.6 in Apr, indicating a further softening in business conditions. New orders, including exports, and output fell. Meantime, there was a notable easing in inflation Traditional industrial production rose sharply in Mar, leaving it up by 2.3% QoQ and 7% YoY in Q1.

UK Economy Down, But Not Out

The Bank of England’s (BoE) latest set of detailed economic forecasts show it is no longer expecting a recession in the UK. The forecasts are contained in its quarterly Monetary Policy Report for May 2023.

Simply the Best

The past week saw the CSO publish the Labour Force Survey results for the opening quarter of 2023.