Dear Reader,

Today's overview of economic news and market action:

• Risk averse mood on markets yesterday …
• Slew of mixed data released for the Eurozone and US …
• Currency-wise, the dollar was in the ascendancy but handed back its gains overnight …
• Meantime, sterling was under pressure yesterday …
• Softer tone to sterling sees EUR/GBP open up above 86p … 
• GBP/USD is near the halfway mark of $1.27-1.28 … 
• EUR/USD is in the top half of $1.09-1.10 … 
• Quiet data schedule on both sides of the Atlantic today …

End of the Line?

Markets remain of the view in the aftermath of the past week’s Fed and ECB policy meetings - which saw them both raise rates by 25bps - that the rate hiking cycles in the US and Eurozone have either drawn to a close or are very close to the end.

Manufacturing sector continues to contract in July

Latest PMI® data for Ireland continued to signal challenging operating conditions across the manufacturing economy.

ECB raises rates again, leaves options open about further hike

As had been well signalled, the July meeting of the ECB’s Governing Council saw the central bank raise rates by a further 25bps, pushing the key deposit rate up to 3.75%

Fed hikes by 25bps, keeps its options open

As widely expected, the Fed hiked US rates by 25bps at the conclusion of its policy meeting yesterday, bringing the target range for the funds rate up to 5.25-5.50%.