EUR/GBP remains on the back foot on Thursday as the European Central Bank’s (ECB) monetary policy announcement fails to lift the Euro (EUR) against the British Pound (GBP), which outperforms its major peers.

EUR/USD extends its decline on Thursday, hitting a fresh 17-month low of 1.1105, its weakest level since May 2025.

USD/CAD attracts buyers during American trading hours on Thursday as traders digest the latest US economic data, which keeps hawkish Federal Reserve (Fed) expectations intact and supports the US Dollar (USD).

The Japanese Yen (JPY) has trimmed some losses against the US Dollar (USD) on Thursday as softer-than-expected Personal Income and Spending data offset the enthusiasm about the bright Gross Domestic Product (GDP) reading.

Philip Wee at DBS Group Research expects the European Central Bank to keep its deposit rate unchanged while signalling a possible December hike. He suggests the ECB will use the breathing space from France’s rating affirmation to focus on its 2% inflation target.

Silver (XAG/USD) accelerated its downtrend on Thursday, with bears pushing against the floor of the yearly trading range at the $52.60 area.

GBP/JPY holds modest gains on Thursday as the Japanese Yen (JPY) underperforms most of its major peers. Investors assess the UK Autumn Budget and await the Bank of Japan’s (BoJ) monetary policy announcement on Friday. At the time of writing, the cross trades around 210.64, up 0.15% on the day.

The British Pound (GBP) edges down to near 1.3312 against the US Dollar (USD) during the European trading session on Thursday.

Societe Generale strategists note that EUR/USD remains near the lower end of its recent trading range following the Fed’s decision to hold rates at 3.75%-4.00%.

Brown Brothers Harriman’s Elias Haddad judges the UK October 2026 Budget as neutral for the Pound and gilts. The government slightly increases fiscal tightening while planning marginally higher debt issuance. The cyclically adjusted primary balance is projected to swing from a small deficit to a surplus, but the added fiscal restraint is seen as too modest to significantly alter Bank of England (BoE) rate hike expectations.

Francesco Pesole at ING highlights that the Bank of Canada’s (BoC) 25bp hike to 2.50% is unlikely to be the last, with another move expected in early 2027 and risks of an earlier increase if energy prices stay high.

The US Dollar (USD) nurses minor gains against the Swiss Franc (CHF) on Thursday, with markets calm in the aftermath of the US Federal Reserve (Fed) meeting.

Commerzbank’s Antje Praefcke notes that while the European Central Bank (ECB) is unlikely to change rates today, its stance on future hikes is key for the Euro. Concerns over France’s public finances and falling headline inflation argue for caution next year.

The Euro (EUR) trades lower against the US Dollar (USD) on Thursday, with price action contained within Wednesday’s range, as investors bide their time ahead of the European Central Bank’s (ECB) monetary policy decision.

Eurozone Business Climate registered at 0.09 above expectations (0) in October

Eurozone Services Sentiment came in at 5.3 below forecasts (5.9) in October

Eurozone Industrial Confidence came in at -3.4, above forecasts (-3.8) in October

Eurozone Economic Sentiment Indicator below expectations (97.5) in October: Actual (96.9)

Rabobank's Senior FX StrategistJane Foley discusses EUR/USD, noting that the European Central Bank (ECB) is expected to keep rates unchanged, with another hike likely in December.

The British Pound (GBP) edges down to near 1.3312 against the US Dollar (USD) during the European trading session on Thursday.

EUR/CAD continues its losing streak that began on October 16, trading around 1.5580 during European hours on Thursday. The currency cross depreciated as the Euro (EUR) lost ground ahead of the European Central Bank’s (ECB) upcoming policy decision.

The EUR/USD pair sticks to a mildly negative bias through the first half of the European session on Thursday, currently trading below 1.1150 and close to its lowest level since May 2025.

The New Zealand Dollar (NZD) is giving back previous gains against the US Dollar (USD) on Thursday, turning negative on the daily chart, and leaving the immediate bearish trend intact after dropping nearly 1% on Wednesday.

ING’s Francesco Pesole expects the European Central Bank to keep rates unchanged and does not see French bond market stress as sufficient to trigger a dovish pivot, given high Oil and gas prices. Markets price some chance of a December hike, but ING anticipates a cautious communication. The bank sees EUR/USD holding above 1.110, with US data potentially exerting modest downside pressure.

USD/CAD remains subdued for the second successive day, trading around 1.3990 during European hours on Thursday.

Commerzbank strategists Dr. Henry Hao and Charlie Lay note that USD/INR rose slightly but continues to trade comfortably within the 94–97 range seen over the past six months.

The EUR/JPY cross meets with fresh supply on Thursday, stalling the previous day's modest bounce from the 175.40 area, or the weekly low.

UOB strategists Quek Ser Leang and Lee Sue Ann note that USD/JPY price action has been volatile but ultimately little changed, with the pair closing near 157.82. Their short-term view is for USD/JPY to stay confined within tight intraday ranges, while over the 1–3 week horizon they expect the Dollar to trade between 157.00 and 158.60 in a range-trading phase.

Here is what you need to know on Thursday, October 29:

OCBC strategists Sim Moh Siong Christopher Wong highlight that the New Zealand Dollar (NZD) fell after the Reserve Bank of New Zealand (RBNZ) unexpectedly held the OCR at 2.75%. Policymakers still signal tighter policy ahead, with two further hikes expected in December and 1Q27.