Dear Reader,

Today's overview of economic news and market action:

• Market action yesterday was generally muted
• Mildly positive tone to investor sentiment
• Data-wise, US macro diary produced a mixed bag of results
• On the currency front, dollar gains from yesterday were not sustained overnight
• As a results, most of majors open this morning similar to 24 hours earlier
• EUR/USD is just above $1.09, EUR/GBP is in lower half of 87-88p
• Ahead today, US is off for Thanksgiving, so focus is on European flash PMIs

Sense and Sensitivity

There was a clear example in the past week of the sensitivity of financial markets to data releases which form a crucial input into the policy deliberations of central bank 

Fed holds rates steady at 22-year high for second meeting

The Fed has enacted 525bps worth of rate increases since it commenced tightening policy in March 2022. The last rate rise came in July, with a 25bps hike.

BoE holds rates at 5.25% for a second straight meeting

This decision was very much in line with market expectations. It marks the second meeting in-a-row where the BoE has remained on hold. Its previous meeting in September represented its first pause after hiking for fourteen consecutive meetings, dating back to December 2021. 

Service sector growth loses further momentum in October

Growth of services activity in Ireland was sustained at the start of the final quarter of 2023, according to the latest AIB PMI® survey data. That said, the rate of expansion slowed for the sixth month running and was the second-weakest over the current 32-month upturn.