Dear Reader,

Today's overview of economic news and market action:

• • Key theme on markets last week was divergence in messaging from central banks …
  • Fed sounded somewhat dovish, whereas the BoE and ECB did not …
  • Despite this, futures contracts softened across the board …
  • Currency-wise, the dollar was on the back-foot …
  • Sees EUR/USD open this morning above $1.09 …
  • GBP/USD is in the top half of $1.26-1.27 …
  • EUR/GBP remains in and around 86p …
  • US and UK inflation data for November the highlight this week

ECB holds the line on tight policy as pressure builds for rate cuts

The December meeting of the ECB’s Governing Council saw the Central Bank maintain its key deposit rate at 4%, which was in line with expectations.

As widely expected, the US Federal Reserve Open Market Committee left its key interest rates on hold at the conclusion of its two-day meeting last night.

Supply maintains momentum, prices recover after weak start

The main focus of the Irish residential property market over the last number of years has been supply, or more specifically the lack of adequate supply.

World economy has lost momentum during 2023. Even the US economy may be starting to slow after a strong performance year-to-date. Subdued growth expected again in 2024.

BoE holds rates at 5.25%, in no mood to ease policy

The December meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank keep its key interest rate unchanged at 5.25%.