Dear Reader,

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

• Risk off mood from Tuesday carried over into yesterday …
• Euro Stoxx 50 down 0.7%, S&P 500 fell by 0.4% …
• Currency-wise though, the dollar and yen handed back their recent gains …
• Euro holding a firmer tone also …
• Sees EUR/USD open up near the midpoint of $1.10-1.11 …
• GBP/USD is in the top half of $1.24-1.25 …
• EUR/GBP is operating above the halfway mark of 88-89p …
• First reading of Q1 GDP in the US due today …

Storm Clouds Gathering

• It is a tricky balancing act for central banks in trying to engineer a slowdown in economic activity to lower inflation, by tightening monetary policy, without going too far in hiking rates, and having an even greater contractionary impact on demand.

Sensitive Expectations

It is a tricky balancing act for central banks in trying to engineer a slowdown in economic activity to lower inflation, by tightening monetary policy, without going too far in hiking rates, and having an even greater contractionary impact on demand. 

PMI eased back to 49.7 in Mar, indicating a modest softening in business conditions. New orders, including exports, and output fell. Meantime, there was a further easing in inflation