Dear Reader,

Today's overview of economic news and market action:

• • Positive tone to investor sentiment yesterday …
  • Currency-wise, the main pairs were tightly range bound … 
  • EUR/USD opens near the midpoint of $1.05-1.06 … 
  • GBP/USD is in the top half of $1.21-1.22 … 
  • EUR/GBP remains at the half way mark of 86-87p …
  • US industrial production and retail sales (Sep) the highlight today …
  • Remarks from a number of Fed speakers will also garner attention …

Sweet Spot

In recent years, the Irish public finances have been faced with the need to provide for short-term but often substantial government expenditure policy responses to a number of external shocks, including Brexit, COVID-19 and both the Ukrainian humanitarian and Cost of Living crises.

Renewed downturn in manufacturing performance as lower export sales hit total order books

Subdued global demand conditions and customer destocking were factors holding back new business intakes. As a result, export sales resumed their downward trend in September, largely driven by falling spending by European clients.

Inflation on Downward Path

The ‘higher for longer’ outlook for interest rates has been the key factor behind the big movements in financial markets in recent weeks. 

 Strong Public Finances

Today’s budget contained a fresh package of cost of living support measures totalling €2.7bn that will be rolled out over the winter months. These are mainly taking the form of direct household payments and energy credits. The Government is also providing an additional €6.4bn in other spending increases and tax cuts for next year.