Commerzbank’s Antje Praefcke expects the Riksbank to leave its policy rate at 1.75% while continuing to signal a possible hike by year-end. Despite very low current inflation, projections show price pressures rising again as temporary tax cuts expire and energy prices stay high.

The USD/CAD pair trades in positive territory around 1.4100 during the early European trading hours on Thursday.

The US Dollar (USD) consolidates gains against the Japanese Yen (JPY) on Wednesday, with bulls pushing against the key 200-day Simple Moving Average (SMA), at 158.47.

Danske Bank’s Danske Research Team notes that strong US PMIs and hawkish Federal Reserve pricing weighed on EUR/USD. The composite PMI rose sharply, driving expectations for another Fed rate hike in October and pulling EUR/USD below 1.14.

The GBP/USD pair posts modest gains near 1.3240 during the early European trading hours on Thursday. However, the potential upside for the major pair might be limited amid a widening policy gap between a hawkish Federal Reserve (Fed) and a more cautious Bank of England (BoE). 

The Indian Rupee (INR) extends its losses against the US Dollar (USD) on Thursday. The USD/INR pair jumps to near 95.90 as the Indian currency comes under pressure, with oil prices regaining ground, and firm Federal Reserve (Fed) interest rate hike expectations strengthen the US Dollar further.

The EUR/USD pair drifts lower for the third straight day, hitting a fresh low since July 28 during the Asian session on Thursday, though it lacks follow-through.

USD/CHF loses ground after registering modest gains the previous day, trading around 0.8240 during Asian hours on Thursday. Traders await the Swiss National Bank (SNB) interest rate decision due later in the day.

The NZD/USD pair flatlines around the 0.5675 region, trading just above its lowest level since early July, set the previous day, as investors await a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.

The EUR/JPY cross trades in negative territory around 179.85 during the early European trading hours on Thursday. Intervention risks from Japanese authorities provide some support to the Japanese Yen (JPY) against the Euro (EUR). Germany’s IFO survey is due later on Thursday. 

USD/CAD steadies after three days of gains, trading around 1.4100 during Asian hours on Thursday. The USD/CAD pair has moved little as the commodity-linked Canadian Dollar (CAD) maintains its position amid cautious sentiment surrounding oil prices.

Silver price (XAG/USD) extends its losses for the second successive day, trading around $64.10 per troy ounce during the Asian hours on Thursday.

The USD/JPY pair attracts some sellers to around 157.85 during the Asian trading hours on Thursday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) as traders remain on high alert for further intervention from Japanese authorities.

The AUD/USD pair hits a fresh low since August 7, around the 0.7025 region, following the release of Australian monthly jobs data, though it lacks follow-through selling and defends the 200-day Simple Moving Average (SMA) pivotal support.

The GBP/USD pair sticks to a mildly negative bias for the fourth straight day, trading around the 1.3230-1.3225 region during the Asian session on Thursday, near its lowest level since early July, touched the previous day.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7489 compared to the previous day's fix of 6.7468 and 6.7184 Reuters estimate.

The EUR/USD pair loses ground to near 1.1380 during the early Asian trading hours on Thursday. The major pair extends its downside as hawkish signals from the US Federal Reserve (Fed) boost the US Dollar (USD) against the Euro (EUR).

Tuesday's peak just under 1.2500 was the highest for AUD/NZD since early 2013. The cross is trading just above 1.2400, on track for a second straight down day.

The Aussie Dollar stumbles over 1% against the US Dollar on Wednesday as US Treasury yields soar, with the US 5- and 10-year T-note yields surpassing the 5% threshold amid investor confidence in further Federal Reserve tightening. The AUD/USD trades at 0.7039 after peaking at 0.7118.

The bottom of NZD/USD's range since April is about 0.5600, and the pair is back in the lower part of it. It is trading just under 0.5700, its lowest since early July, which is about where it was before the Reserve Bank of New Zealand (RBNZ) began raising rates on July 8.

Holding up the Yen is costing Japan more each time and working for less time. USD/JPY is trading above 158.00, on track for its first daily close above its 200-day average since September 2.

Europe's September business surveys were the strongest since April 2023, and the Euro fell to its lowest since late July on the day they came out. The eurozone's flash Purchasing Managers Index (PMI) composite reading came in at 53.1 against a 51.5 forecast, with services at 53 against 51.7.

Wednesday's flash Purchasing Managers Index (PMI) surveys showed US business growing at its fastest pace since July 2021 and British business slowing.

The GBP/JPY extended its losses to two straight trading sessions, down over 0.17% and trading near the week's lows, with 209.40 seen as the first support level before sellers push prices lower.

Australia will release the August monthly employment report on Thursday at 01:30 GMT. Ahead of the announcement, analysts expect the country to have added 20K new jobs in the month, while the Unemployment Rate is expected to remain steady at 4.5%.

The Mexican Peso extends its depreciation against the Greenback, as the USD/MXN pair rallies over 1.25% amid speculation that the Fed will raise rates more than once, with Fed officials leaning hawkish, underpinning the US Dollar.

USD/CHF rebounds above 0.8240 as higher highs remain intact.

The Japanese Yen (JPY) extends its decline against the US Dollar (USD) on Wednesday, with USD/JPY climbing to a three-week high as the hawkish Federal Reserve (Fed) outlook keeps the Greenback in demand. At the time of writing, the pair trades around 158.18, up 0.50% on the day.

NZD/USD tumbles on Wednesday, losing 1.00% on the day to trade around 0.5670 at the time of writing. The pair faces strong selling pressure as the US Dollar (USD) benefits from stronger-than-expected United States (US) activity data, reinforcing expectations of further interest-rate hikes.

The Pound Sterling tanks over 0.70% against the Greenback on Wednesday as US economic data showed business activity is picking up, while fears of a US diesel export ban pushed crude prices higher. The GBP/USD trades at 1.3253 after peaking at 1.3347.