Forex investors are focused on comments from Cleveland Federal Reserve Bank President Beth Hammack, who told CNBC today that the regulator must maintain a restrictive stance to allow inflation to return to its 2.0% target. She noted that risks remain—rising price pressures and labor market cooling—and stressed that the first is more important, meaning she does not support rate cuts in the near term. Meanwhile, President Donald Trump warned of potential major government staff cuts if Congress fails to agree on a temporary funding bill, which could lead to a government shutdown on Wednesday. Democrats are pushing for expanded healthcare subsidies under the Affordable Care Act, while Republican leaders refuse to negotiate until economic slowdown risks are addressed.

Eurozone

The euro is strengthening against the U.S. dollar, weakening against the yen, and showing mixed dynamics versus the pound.

Traders are assessing September data on consumer and business confidence in the euro area: the index rose from 95.3 to 95.5, beating expectations of a decline to 95.2 despite global trade uncertainty. Positive sentiment is supported by the European Central Bank’s long-term dovish stance and higher government capital investments. Tomorrow at 14:00 (GMT+2), Germany’s September CPI will be released: forecasts point to a rise from 2.2% to 2.3%, while the harmonized index is expected to edge up from 2.1% to 2.2% y/y. Against this backdrop, the ECB is unlikely to cut rates at its next meeting.

United Kingdom

The pound is strengthening against the U.S. dollar, weakening versus the yen, and showing mixed performance against the euro.

In August, consumer credit rose to GBP 1.692B versus forecasts of a decline to GBP 1.600B, with unsecured consumer loans up 7.1%. This marks the strongest growth since late last year, reflecting a rebound in household spending ahead of expected tax hikes this fall. On the other hand, mortgage lending fell from GBP 4.51B to GBP 4.31B, with approved mortgage numbers dropping from 65.16K to 64.68K. Meanwhile, at the annual Labour Party conference in Liverpool, Chancellor Rachel Reeves pledged to push for an economic “renewal” of the UK, with a focus on tackling long-term youth unemployment. Analysts note she may raise taxes by GBP 50B to offset the budget deficit amid heavy spending on welfare and public services.

Japan

The yen is strengthening today against the euro, pound, and U.S. dollar.

Investors are reacting to comments from Bank of Japan board member Asahi Noguchi, who stated that macroeconomic data shows steady progress toward the BoJ’s 2.0% inflation target. Although decades of deflation since the 1990s have led many experts to doubt change, Japanese companies are increasingly passing higher costs on to consumers and signaling readiness to raise wages.

Australia

The Australian dollar is weakening against the yen, strengthening versus the U.S. dollar, and trading mixed against the euro and pound.

Tomorrow at 06:30 (GMT+2), the Reserve Bank of Australia will hold its monetary policy meeting. Most economists surveyed by Reuters expect the rate to remain at 3.60%, following August’s CPI increase to 3.0%, the upper bound of the target range. At the same time, investors believe that with signs of labor market cooling, officials may deliver another rate adjustment in November.

Oil

Oil prices are correcting as exports from Iraq’s Kurdistan region to Turkish ports resume, which could add 180K–190K barrels per day to supply.

Additionally, at Sunday’s OPEC+ meeting, members may approve a production hike of at least 137K barrels per day. Analysts note that cartel members are seeking to regain market share, but current capacity remains insufficient to fully meet planned output. According to experts, OPEC+ countries are producing nearly 500K barrels per day below target, further restricting supply and potentially limiting price declines.