Dear Reader,

Today's overview of economic news and market action:

• • Risk appetite was holding a firmer tone yesterday …
  • Currency-wise, the dollar and yen were on the defensive …
  • However, both recouped most of their losses overnight …
  • This morning, sterling has softened following below consensus CPI inflation data …
  • EUR/USD is just above the midpoint of $1.09-1.10 …
  • GBP/USD is in the top half of $1.26-1.27 …
  • EUR/GBP is near the halfway mark of 86-87p …
  • Consumer confidence (December)m due on both sides of the Atlantic today …

ECB holds the line on tight policy as pressure builds for rate cuts

The December meeting of the ECB’s Governing Council saw the Central Bank maintain its key deposit rate at 4%, which was in line with expectations.

As widely expected, the US Federal Reserve Open Market Committee left its key interest rates on hold at the conclusion of its two-day meeting last night.

Supply maintains momentum, prices recover after weak start

The main focus of the Irish residential property market over the last number of years has been supply, or more specifically the lack of adequate supply.

World economy has lost momentum during 2023. Even the US economy may be starting to slow after a strong performance year-to-date. Subdued growth expected again in 2024.

BoE holds rates at 5.25%, in no mood to ease policy

The December meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank keep its key interest rate unchanged at 5.25%.