ECB policymaker Joachim Nagel warned that the central bank stands ready to act to curb rising inflation, keeping tightening options on the table.

During a Bloomberg interview on Friday, European Central Bank policymaker and Bundesbank President Joachim Nagel reaffirmed the ECB’s commitment to price stability. He said the bank will take “decisive action if needed” to bring consumer‑price growth back to target, noting that inflation has picked up again, driven largely by higher energy costs.

Inflation outlook and policy implications

• Nagel highlighted that price increases cannot be ruled out in the coming weeks, underscoring upside risks to the inflation outlook.
• His remarks pushed the FXS Speechtracker score to 8.2, well above the historic average of 6.9, signalling a hawkish tone.
• The warning keeps the prospect of further ECB tightening alive, even as the euro showed little immediate reaction, trading around 1.1200 against the dollar (up 0.22%).

Broader market backdrop

• The Australian dollar rose toward 0.7035 as hotter CPI data revived expectations of rate hikes by the Reserve Bank of Australia.
• The Japanese yen strengthened, with USD/JPY slipping toward 157 after the Bank of Japan left policy unchanged but signalled a willingness to adjust easing as needed.
• Gold fell to about $3,979, its lowest since July, as markets priced in possible further Fed rate hikes, keeping the metal on track for a monthly loss.

What traders are watching

• Eurozone inflation data due later this week, which could confirm or ease Nagel's concerns about energy‑driven price pressures.
• ECB Governing Council minutes expected in early November, likely to reveal the extent of consensus on additional tightening.
• Key technical levels for EUR/USD around 1.1180 support and 1.1240 resistance as market participants price in potential policy moves.

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• BoJ holds rates steady as gold slips below $4,000
• BoJ likely to keep raising rates each quarter, says TD Securities
• France's Q3 GDP contracts, adding pressure on ECB policy

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This article is compiled from international market news for information only. It is not investment advice.