Dear Reader,

Today's overview of economic news and market action:

• • US Treasury yields continued to move higher yesterday
  • Investor sentiment was weak amid the higher yield backdrop
  • Dollar was supported by higher yields and risk averse mood 
  • EUR/USD remained pinned down below $1.05
  • Meanwhile, USD/JPY briefly breached the ¥150 level
  • Elsewhere, EUR/GBP remained in the upper half of 86-87p
  • Today’s macro diary includes the final readings of the September Composite PMIs

Growth in services activity slowest since start of 2023

The latest AIB PMI® survey data signalled sustained growth in the Irish service sector in September, with further solid increases in total activity and new business.

Renewed downturn in manufacturing performance as lower export sales hit total order books

Subdued global demand conditions and customer destocking were factors holding back new business intakes. As a result, export sales resumed their downward trend in September, largely driven by falling spending by European clients.

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%.