Dear Reader,

Today's overview of economic news and market action:

• Risk averse mood to investor sentiment yesterday
• Equity markets fretted over impact of better US retail sales on Fed rate outlook
• Currency-wise, action remained confined to relatively narrow ranges
• Sterling had some momentum following strong UK Q2 wage growth
• EUR/GBP below 86p, GBP/USD regained the $1.27 threshold
• Elsewhere, EUR/USD continued down near to $1.09 level
• Ahead today, EZ Q2 GDP, EZ and US industrial production as well as Fed minutes

Supply and Demand

 Based on underlying demographics, the Irish economy needs at least 30,000 new residential units to be built each year.

ECB raises rates again, leaves options open about further hike

As had been well signalled, the July meeting of the ECB’s Governing Council saw the central bank raise rates by a further 25bps, pushing the key deposit rate up to 3.75%

Sustained uplift in supply still required

Based on underlying demographics, the Irish economy needs at least 30,000 new residential units to be built each year. However, new supply has been running well below this level since 2009, until it jumped sharply to 30,000 units last year.