Dear Reader,

Today's overview of economic news and market action

• The cautious tone to investor sentiment persisted yesterday …
• Data-wise, ADP employment printed below the consensus in the US …
• The dollar weakened in the aftermath of the ADP data …
• Elsewhere, the yen remained on the front-foot …
• This sees USD/JPY open in the lower end of ¥142-143 …
• EUR/USD is up above $1.11 …
• GBP/USD is operating in the top half of $1.32-1.33 …
• EUR/GBP continues to trade in the bottom half of 84-85p …
• Today, the focus is very much on the US labour market report for August …

All rates quoted are indicative market rates.

The headline AIB Ireland Manufacturing PMI® edged up to its highest level since February and signalled a marginal overall improvement in business conditions. An upturn in manufacturing sector performance mostly reflected sustained production growth and a faster rise in employment numbers. Survey respondents often commented on efforts to boost capacity in line with long-term business expansion plans.

Irish services activity continued to rise solidly in August, AIB PMI® survey data indicated. Growth of both new business and employment accelerated, and outstanding work increased at the strongest rate in nearly a year. Less positively, the overall 12-month outlook was the weakest since November 2022.

House prices continue to trend sharply higher. They were up 8.6% YoY in June. Consumer prices rose by 0.2% in July, amid further increases in transport and hospitality costs. Revisions to the data show the unemployment rate averaged 4.4% in Q2’24 up from 4.3% in Q1’24. The preliminary reading indicates GDP expanded by 1.2% in Q2’24, but it remained 1.4% lower in YoY terms.