Dear Reader,

Today's overview of economic news and market action:

• • Cautious tone to investor sentiment yesterday …
  • Sovereign bond yields continued to climb higher …
  • Currency-wise, the euro was on the defensive …
  • EUR/USD opens at the $1.05 threshold … 
  • EUR/GBP is operating back near the midpoint of 86-87p … 
  • GBP/USD is just below the halfway mark $1.21-1.22 …
  • Today, flash German & Spanish inflation (Sep) are due …
  • Remarks from Fed Chair Powell will also be in focus …

Many Headwinds Make for Difficult Landing

The latest quarterly update from the OECD on the outlook for the global economy was published last week.

BoE holds rates at 5.25% in finely balanced decision

After fourteen consecutive rate hikes, stretching back to December 2021, yesterday’s meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank leave rates unchanged at 5.25%.

Fed leaves rates unchanged in a hawkish hold

As had been well signalled, the US Fed left official interest rates unchanged at the conclusion of its policy meeting.Thus, the target range for the funds rate remains at 5.25-5.50%. 

The Real Risk Takers

The latest quarterly update from the OECD on the outlook for the global economy was published in the past week.