ISM services showed a mixed set of numbers on Friday. The index as a whole showed activity slowed to 50 from 51.7, prices paid rose to 69.4 (indicating inflationary pressures) and the employment component rose to 47.2, indicating some improvement. USD reaction was rather muted with the greenback slightly softer on the number.
Final readings to UK PMIs on Friday were revised lower for September, indicating slower activity than previous estimates.
*Daily move - against G10 rates as of 06:00 BST, 06.10.25
** Indicative rates - interbank rates as of 06:00 BST, 06.10.25
USD is starting the week stronger benefitting from a weaker JPY, following pro-stimulus lawmaker Sanae Takaichi's surprise win in the LDP leadership contest. As a result, markets see Takaichi’s arrival as potentially dovish for the Bank of Japan (BoJ)
Today's agenda is limited to remarks from European Central Bank (ECB) and Bank of England (BoE) officials. The euro is also under pressure, following President Emmanuel Macron’s move to retain much of the previous cabinet - a decision that heightens political uncertainty in France and raises fresh concerns over government stability.
Looking ahead, the data calendar appears quiet this week, as the ongoing US government shutdown continues to postpone the publication of key economic indicators.
The highlights for this week will be the minutes from the latest Fed meeting on Wednesday and the ECB minutes on Thursday.
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