The European Central Bank (ECB) is expected to hold interest rates steady in October before resuming hikes in December, amid persistent upside risks to inflation, according to a Reuters poll conducted between October 5-8 and reported by FX Street.
Minutes from the ECB’s September policy meeting revealed that all members viewed inflation risks as tilted to the upside, reinforcing the cautious stance on monetary tightening. Meanwhile, the euro weakened by 0.16% to around 1.1178 against the US dollar during Thursday’s European trading session, pressured by rising US bond yields that have bolstered the greenback.
For Japanese investors, these developments highlight the ongoing volatility in FX markets as central bank policies diverge, impacting currency valuations and cross-border investment decisions.