Dear Reader,

Today's economic news and market action:

• European session somewhat subdued yesterday … 
• Overnight, the Fed hiked interest rates by 25bps …
• Dollar, which was already on the defensive, fell further …
• Sees EUR/USD open today at the $1.10 threshold …
• GBP/USD is above the midpoint of $1.23-1.24 …
• EUR/GBP is operating in the top half of 88-89p …
• Today, both the ECB & BoE expected to hike rates by 50bps …
• The meetings pose event risk for the euro and sterling …

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The focus of markets is very much on central banks this week, as the US Federal Reserve, Bank of England and European Central Bank all hold their first monetary policy meetings of 2023. All three are set to deliver further increases in interest rates given that inflation remains at very elevated levels. 

Staying the Course

Markets will be very much focused on central banks in the week ahead, as the US Federal Reserve, Bank of England and European Central Bank hold their first monetary policy meetings of 2023.

AIB's Economic Research Unit provides regular commentary on the domestic and global economy, currency and interest rate markets, and special commentary on key events...