Dear Reader,

Today's overview of economic news and market action

• Generally uneventful start to the week on markets
• Market holiday in the US and quiet European macro diary
• Main FX pairs confined to narrow ranges
• EUR/USD remains in and around the midpoint of $1.10-1.11
• EUR/GBP continues in the lower half of 84-85p
• Another quiet macro diary today
• Main highlight is the US manufacturing ISM (Aug)

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.

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.