Dear Reader,

 

Today's overview of economic news and market action

  • Markets relatively quiet yesterday in the run-up to the Fed policy decision …
  • Overnight, Fed left interest rates unchanged and announced a slower pace of QT from June …
  • However, at the press conference Chair Powell was less hawkish than anticipated …
  • Meantime, price action in the yen suggests Japanese authorities intervened in the market again overnight …
  • EUR/USD opens this morning above the $1.07 threshold …
  • GBP/USD is near the midpoint of $1.25-1.26 …
  • EUR/GBP is at the halfway mark of 85-86p …
  • USD/JPY is close to the ¥155 handle …
  • Quiet data schedule on both sides of the Atlantic today …
 
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Today's Opening FX Rates
 
    % Change
      Day* End 2023
EUR/USD 1.0725   0.67 -2.82
EUR/GBP 0.8555   0.20 -1.30
GBP/USD 1.2535   0.46 -1.52
GBP/EUR 1.1683   -0.20 1.32
*versus Previous Day's European Open
 
AIB Ireland Manufacturing PMI®
 

Steepest fall in new orders since December 2022

 

AIB Ireland Manufacturing PMI® data signalled a sustained reduction in output volumes and incoming new work during April, with both rates of decline accelerating since the previous survey period. Total new business decreased to the greatest extent for 16 months, in part reflecting a sharp fall in export sales.
 
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Weekly Market Brief: 29 Apr-3 May
 

Tide Turning for the Eurozone Economy?

 

This week’s macro data provided further evidence that the US economy is beginning to slow from the rapid pace of growth seen in 2023. The 1.6% rise in GDP in Q1 was well below the market consensus of 2.4%, and reflected a broad-based slowdown in both domestic spending and net exports.
 
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ECB Watch - April 2024
 

ECB signals June rate cut on the cards


As widely anticipated, the ECB’s Governing Council meeting for April saw the central bank maintain its key deposit rate at 4%. It marked the fifth consecutive policy meeting that the ECB has kept rates unchanged. There was “consensus” rather than unanimity within the Governing Council on the decision.
 
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Irish Economy Watch - April
 

PMI fell to 49.6 in Mar. The slight decline reflected a fall in new business and output and a sharp drop in sentiment. Meantime, inflationary pressures in the sector continued to build
 
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