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ECB September minutes and US Fed signals in focus
Markets are watching for the ECB to maintain a bias toward further tightening after hawkish energy comments, while US mortgage rates near or above 7% are starting to weigh on housing demand.
Action Forex said the European Central Bank is set to publish the minutes of its September monetary policy meeting, which will shed light on discussions within the Governing Council. The outlet noted that President Christine Lagarde’s emphasis on energy prices at the press conference initially triggered a hawkish reaction, though later comments from other council members have softened the tone.
The brief also highlighted expectations that the ECB minutes will still carry a bias toward further tightening. In the United States, Action Forex pointed to planned remarks on the wire from Fed officials, including Waller and Kashkari, alongside the recent release of September FOMC minutes.
According to Action Forex, the September FOMC minutes showed broad support for the 25 basis point rate hike, with most participants viewing another hike as appropriate by year end. The outlet said inflation risks were seen as tilted to the upside and that markets responded modestly, including a slightly lower probability of an October hike.
Action Forex added that higher mortgage rates are beginning to weigh on housing demand, citing long end mortgage rates rising to well above 7%, and that mortgage applications have declined. The outlet also referenced solid economic momentum in the minutes, including AI related investment supporting business investment.