Dear Reader,

Today's overview of economic news and market action:

• • Marked contrast in risk appetite on either side of the Atlantic last week …
  • This largely stemmed from a hardening in US rates and a softening in Eurozone rates …
  • Currency-wise, the dollar was in the ascendancy and the yen outperformed …
  • Sees EUR/USD open this morning back below $1.08 …
  • EUR/JPY is down in the ¥156-157 corridor …
  • EUR/GBP remains just below 86p …
  • GBP/USD is in the bottom half of $1.25-1.26 …
  • Jam-packed macro-calendar this week includes policy meetings of the Fed, ECB and BoE

Great Expectations

Markets have been on fire since late October, with equities marching higher and bond yields tumbling, as investors bet on rapid rate cuts in 2024. 

World economy has lost momentum during 2023. Even the US economy may be starting to slow after a strong performance year-to-date. Subdued growth expected again in 2024.

Latest survey data from the AIB Ireland Manufacturing PMI® highlighted a stabilisation in overall business conditions, following modest downturns in September and October.

Service sector expansion accelerates in November

Rates of expansion in total activity and new business both accelerated on the month for the first time since April, with a notable rebound in the Transport, Tourism & Leisure sector.