Dear Reader,

Today's overview of economic news and market action

• Cautious tone to investor sentiment last week …
• Futures contracts hardened across the board, most notably in the UK …
• Currency-wise, sterling was on the front foot as UK rates firmed by more than elsewhere …
• Sees EUR/GBP open today back in the lower half of 85-86p …
• GBP/USD is in the $1.27-1.28 range …
• EUR/USD is near the midpoint of $1.08-1.09 …
• This week, the focus will be on EZ flash HICP inflation (May) and US core-PCE inflation (April) …

Hot Irish Labour Market Coming Off the Boil

Irish labour market expanded at a more moderate pace in Q1, but the data still point to robust growth in the Irish economy at the start of 2024. Employment increased by 0.4% in the quarter, but the annual growth rate slowed to 1.9% y/y (+3.4% y/y in Q4 2023).

World economy continues to exhibit resilience. However, subdued growth expected again in 2024, with US outperformance starting to wane, UK and Eurozone accelerating. Inflation remains sticky in key markets, particularly the US and UK, with consumer spending underpinning high core inflation, and higher oil prices a renewed inflationary risk.