Dear Reader,

Today's economic news and market action:

• Somewhat subdued mood on markets for much of yesterday …
• Currency-wise, the main pairs were confined to tight ranges …
• Euro was somewhat firmer, while sterling was a touch weaker …
• Sees EUR/GBP open today above the 88p threshold … 
• GBP/USD is operating in the lower half of $1.23-1.24 …
• EUR/USD is in the top half of $1.08-1.09 …
• Later today, US Fed expected to hike rates by 25bps …
• Eurozone inflation data (January) are due beforehand …

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The focus of markets is very much on central banks this week, as the US Federal Reserve, Bank of England and European Central Bank all hold their first monetary policy meetings of 2023. All three are set to deliver further increases in interest rates given that inflation remains at very elevated levels. 

Staying the Course

Markets will be very much focused on central banks in the week ahead, as the US Federal Reserve, Bank of England and European Central Bank hold their first monetary policy meetings of 2023.

AIB's Economic Research Unit provides regular commentary on the domestic and global economy, currency and interest rate markets, and special commentary on key events...