Dear Reader,

Today's overview of economic news and market action:

• Risk averse mood continued yesterday
• As expected, the BoE hiked rates again, by 25bps to 5.25%
• However, it provided no clear guidance on rate outlook
• Sterling initially weakened, but this proved short-lived
• EUR/GBP opens this morning once again near to 86p
• Elsewhere, EUR/USD is at midpoint of $1.09-1.10
• Macro highlight today is US non-farm payrolls for July

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%.