Dear Reader,

Today's overview of economic news and market action

• Investor sentiment staged a modest rebound yesterday …
• On the currency front, the main pairs remained range bound …
• Amid the improvement in risk appetite, the dollar was on the defensive …
• This sees EUR/USD open this morning up above $1.08 …
• GBP/USD is operating up in the top half of $1.29-1.30 …
• EUR/GBP remains in the lower half of 83-84p …

All rates quoted are indicative market rates.

Growth in Ireland’s key trading partners uneven, geopolitical risks to the fore. Irish economy expected to grow at a moderate pace in the coming years. Households remain cautious in spending patterns. US dollar dominance tested by macro trends.

Growth concerns driving the ECB

The ECB policy meeting for October marked a firm shift in the focus of the Governing Council away from inflation 
towards growth concerns in the Eurozone. As outlined in our ECB Watch publication, the central bank cut interest rates 
for a third time this year. It reduced rates by 25bps, with the Deposit rate lowered to 3.25%, while the Re-fi rate was 
decreased to 3.40%.

The October meeting of the ECB’s Governing Council saw the central bank cut interest rates for a third time this year. It reduced rates by 25bps, with the Deposit rate lowered to 3.25%, while the Re-fi rate was decreased to 3.40%. Today’s policy easing represents the first consecutive rate cuts from the ECB in 13 years, as it also lowered rates at its previous meeting in September.