Dear Reader,

Today's overview of economic news and market action:

• Relatively quiet day on markets yesterday … 
• Currency-wise, the euro remained on the defensive …
• Sterling stabilised also … 
• EUR/USD opens this morning near the midpoint of $1.10-1.11 … 
• EUR/GBP is down below the 86p handle … 
• GBP/USD is changing hands just below the $1.29 mark …
• Today, the Fed is widely expected to hike rates by 25bps …

PMI declined to 47.3 in June, indicating a further softening in business conditions. New orders, and output fell. Meantime, there was a further easing in inflationary pressures Traditional industrial production rose by 3.8% in the 3 mths to May. 3 mma up 6.6% YoY also.

Lower Growth Path for Economy in 2023

Recently published National Accounts data by the CSO underline the exceptional performance of the Irish economy in 2021 and 2022, as it rebounded strongly from the COVID-19 pandemic. GDP increased by 15.1% in 2021 and 9.4% last year.

Looking Under the Bonnet

Recently published National Accounts data by the CSO underline the exceptional performance of the Irish economy in 2021 and 2022, as it rebounded strongly from the COVID-19 pandemic

Economic data, especially on labour markets, have generally surprised to the upside in 2023, though GDP growth was sluggish in Q1.

Global economy still facing considerable headwinds  Central banks remain on rate tightening path, though Fed and ECB appear to be nearing end of their hiking cycle. BoE has further to go, with markets pricing in another 150bps of UK rate hikes