Dear Reader,

Today's overview of economic news and market action

• Cautious mood to investor sentiment yesterday
• On bond markets, yields were generally higher
• Currency-wise, yen weakness and USD/JPY grabbed the headlines
• Elsewhere, dollar also held the upper hand versus EUR and GBP
• EUR/USD back down below $1.07
• Today’s data diary includes Eurozone EC sentiment indicators (June)

Consumer prices rose by 0.5% in May, amid an increase in transport and hospitality costs. However, the YoY rate stayed at 2.6%. Consumer sentiment declined, albeit marginally, for a fourth consecutive month in May. Revisions to the data show the unemployment rate averaged 4.2% in Q1’24 down from 4.5% in Q4’23. On a monthly basis, it has printed at 4.0% in Mar-May.

Renewed momentum in Irish residential property prices 
Irish residential property prices experienced quite a turnaround over the course of 2023. Initially they started the year on a downward trajectory, with the CSO measure of official house prices registering monthly falls, averaging 0.3% in the first 5 months of the year, against the backdrop of rising interest rates.