Dear Reader,

Today's overview of economic news and market action:

• • Main equity indices recouped some of their recent losses yesterday …
  • US Treasury yields declined, while German Bund and UK Gilt yields rose …
  • Against this backdrop, the dollar rally paused for breath …
  • Sees EUR/USD open up in the top half of $1.05-1.06 … 
  • GBP/USD is operating above the $1.22 threshold … 
  • EUR/GBP remains at the midpoint of 86-87p … 
  • Eurozone flash HICP (Sep) & US core-PCE (Aug) inflation due today …

Many Headwinds Make for Difficult Landing

The latest quarterly update from the OECD on the outlook for the global economy was published last week.

BoE holds rates at 5.25% in finely balanced decision

After fourteen consecutive rate hikes, stretching back to December 2021, yesterday’s meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank leave rates unchanged at 5.25%.

Fed leaves rates unchanged in a hawkish hold

As had been well signalled, the US Fed left official interest rates unchanged at the conclusion of its policy meeting.Thus, the target range for the funds rate remains at 5.25-5.50%. 

The Real Risk Takers

The latest quarterly update from the OECD on the outlook for the global economy was published in the past week.