Dear Reader,

Here is an overview of today's economic news and market action:

• Generally cautious tone to investor sentiment last week
• Concerns over US regional banks and debt ceiling
• FX-wise, dollar was in the ascendancy
• EUR/USD starts this week below $1.09 
• GBP/USD is under the $1.25 threshold
• EUR/GBP continues in a narrow range just above 87p
• Today’s macro data diary is sparse to start the week

The Long March

The Bank of England’s latest set of detailed economic forecasts show it is no longer expecting a recession in the UK

BoE hikes by further 25bps to 4.5%, raises growth forecast

As expected, the May meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank announce a 25bps rate increase.

The US Federal Reserve has opened the door to pausing its rate hiking campaign, following a 25bps rate increase at its policy meeting last week, which brought the funds rate up a 5.0-5.25% range.