Dear Reader,

Today's overview of economic news and market action

• Equity markets recouped some of their recent losses yesterday …
• Data-wise, Eurozone flash HICP inflation eased below the consensus in March …
• Currency-wise, the dollar has been under some downward pressure over the past 24 hours …
• This sees EUR/USD open near the midpoint of $1.08-1.09 …
• GBP/USD is at the halfway mark of $1.26-1.27 …
• EUR/GBP remains between 85-86p …
• Today, the ECB monetary policy meeting account is due …
• Remarks from Fed officials will also be under the microscope …

Service sector gains growth momentum in March

The latest AIB PMI® survey data indicated a further acceleration in Irish service sector growth in March, following February's rebound in growth.

BoE gradually moving towards cutting interest rates

The March meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank keep its key interest rate unchanged at 5.25%. This decision was very much in line with market expectations.

Fed primed for 75bps of cuts in 2024, starting in summer 

The US Federal Reserve Open Market Committee’s second meeting of 2024 saw its key interest rate left on hold last night. The target range for the Fed funds rate remains at 5.25-5.50%, a 22-year high. 

PMI jumped to 52.2 in Feb, its highest level since June 2022. A sharp rise in output and employment, alongside growth in new orders were the key features of the survey.