Dear Reader,

Today's overview of economic news and market action:

• • Mixed mood on markets yesterday …
  • On the currency front the dollar remained under pressure …
  • Sees EUR/USD open above $1.09 this morning … 
  • GBP/USD is operating at the $1.27 threshold …
  • EUR/GBP is in the top half of 85-86p …
  • Main highlights today will be US core-PCE (Jul) and EZ HICP (Aug) inflation ….

PMI declined to 47.0 in July, as business conditions softened for a fifth consecutive month. New orders, and output fell. Meantime, there was a further easing in price inflation

Economic data, especially on labour markets, have generally surprised to the upside to date in 2023. Global economy, though, still facing considerable headwinds, with risks to the downside.

Still Flashing Amber

Surging inflation combined with a marked tightening of monetary policy, amid an environment of weakening confidence levels and heightened geo-political tensions, especially in relation to Ukraine, saw the world economy slow sharply during 2022

Downside Risks Still Prevail for Global Economy

Surging inflation combined with a marked tightening of monetary policy, amid an environment of weakening confidence levels and heightened geo-political tensions, especially in relation to Ukraine, saw the world economy slow sharply during 2022. However, concerns that advanced economies could be facing a recession in 2023 have largely abated.