ISM Services Index and Fed Minutes Set Stage for Economic Data Release

This week's economic data and earnings calendar is relatively quiet before earnings season gathers pace next week. One of the key events to watch will be the release of the ISM services index for September on Monday, which is expected to rise to 55.7 from 55.4. Analysts will also be closely watching the prices paid component, particularly after the manufacturing survey's prices paid index came in at 77.9, well above expectations of 72.3.

The stronger-than-expected reading suggests pricing pressures remain elevated in the US economy and could be reflected in September's inflation reports due later this month. The euro/dollar pair has been sensitive to changes in the US inflation outlook, which shape expectations for the relative paths of European Central Bank and Federal Reserve policy.

Another key event will be the release of the Fed minutes on Wednesday, which may offer a closer look at September's rate decision and the factors that persuaded officials it was time to raise rates. Markets will look for whether officials broadly support further rate hikes or whether meaningful divisions remain within the committee.