Dear Reader,

Today's overview of economic news and market action:

• • Mixed mood on markets yesterday …
  • Dollar on the front-foot, supported by a modest firming in US rates …
  • Sees EUR/USD back in the lower half of $1.11-1.12 …
  • GBP/USD down below $1.29 also …
  • EUR/GBP near the midpoint of 86-87p …
  • No major data releases due for the remainder of today …

Holy Grail Coming into View ?

Markets are becoming increasingly confident that the Federal Reserve will manage to engineer a soft landing for the US 

Fed’s Last Tango

Markets are becoming increasingly confident that the Federal Reserve will manage to engineer a soft landing for the US economy. 

Strongest deterioration in Irish manufacturing sector performance for over three years in June

Amid ongoing demand weakness, Irish manufacturing firms continued to see a decline in the health of the sector during June.

Economic data, especially on labour markets, have generally surprised to the upside in 2023, though GDP growth was sluggish in Q1.

Global economy still facing considerable headwinds  Central banks remain on rate tightening path, though Fed and ECB appear to be nearing end of their hiking cycle. BoE has further to go, with markets pricing in another 150bps of UK rate hikes