Dear Reader,

Today's overview of economic news and market action:

• Risk averse mood to investor sentiment last week
• Higher bond yields and a firming in rate expectations weighed on sentiment
• Currency-wise, the action was less eventful
• Sterling made some gains
• EUR/GBP starts this week near midpoint of 85-86p
• Elsewhere, EUR/USD is trading above $1.09
• This week’s highlights include US CPI, UK GDP and ECB meeting account

Good First Innings for Sterling

From a currency viewpoint, one of the biggest surprises over the first half of 2023 has been the strength of sterling 

Challenging outlook for the global economy

Rampant inflation, aggressive interest rate hikes by Central Banks and elevated geopolitical tensions saw global economic growth slow notably over the course of 2022. However, looking back over the first six months of 2023, many of the key advanced economies have performed better than anticipated. 

Strongest deterioration in Irish manufacturing sector performance for over three years in June

Amid ongoing demand weakness, Irish manufacturing firms continued to see a decline in the health of the sector during June.

Substantial growth in the Irish service sector in June

Supported by buoyant demand conditions, Irish service providers registered another marked improvement in the health of the sector during June, latest AIB PMI® survey data showed