Dear Reader,

Today's overview of economic news and market action

• Marked hardening in US futures yesterday, as CPI inflation printed above the consensus …
• Markets now see a 20% chance of a Fed rate cut in June, and 40bps of US policy easing by year end …
• Against this backdrop, the dollar was in the ascendancy, gaining around 1% across the board …
• This sees EUR/USD open this morning in the lower half of $1.07-1.08 …
• GBP/USD is operating down in the $1.25-1.26- band …
• USD/JPY is up above ¥153, a new 34 year high …
• EUR/GBP remains between 85-86p …
• Today, the ECB is expected to leave policy on hold …
• Markets will be paying close attention though for any guidance on a June ECB rate cut …

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.

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.