European Central Bank (ECB) Governing Council member Martin Kocher said on Thursday that the central bank must prevent too high inflation from becoming entrenched.

Strong US manufacturing data boosts expectations for an October Fed rate hike to 69.7%.

Asian stock markets reflect a mixed performance on Thursday ahead of the meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping later in the day.

AUD/JPY extends its losses for the second successive day, trading around 110.80 during Asian hours on Thursday. The currency cross continues to trade under pressure as the Australian Dollar (AUD) remains subdued following the release of the latest domestic labor market data.

Japanese Finance Minister (FM) Satsuki Katayama said on Thursday that principles on foreign exchance established since coordinated Japan-US intervention remain in effect.

Australia Part-Time Employment up to 45.8K in August from previous -32.2K

Australia Full-Time Employment declined to -6.3K in August from previous 16.3K

West Texas Intermediate (WTI) oil price depreciates after registering modest gains in the previous day, trading around $90.80 per barrel during Asian hours on Thursday. Crude oil prices may rebound as ongoing uncertainty surrounds the progress of the United States (US)-Iran diplomatic talks.

US Treasury Secretary Scott Bessent said that the United States (US) and China have agreed to extend a bilateral trade truce that was set to expire in November through January 10, Blomoberg reported on Wednesday.

Ukrainian President Volodymyr Zelenskyy said Kyiv remains ready for a bilateral “energy ceasefire” with Russia after holding separate talks with the leaders of the United States (US) and the United Kingdom (UK) in New York City, CNBC reported on Wednesday.

Iran President Masoud Pezeshkian said that the country won’t allow freedom of navigation through the Strait of Hormuz while sanctions and a US blockade remain in place, Bloomberg reported on Wednesday.

Russia Industrial Output below forecasts (0.5%) in August: Actual (-0.6%)

Iran is reviewing the United States’ (US) response to its proposal aimed at ending hostilities, a senior Iranian official told Reuters on Wednesday, signaling that diplomatic efforts between Tehran and Washington remain underway.

Federal Reserve (Fed) Governor Michael Barr said on Wednesday that the central bank will likely need to raise interest rates further to ensure a timely return to the 2% inflation target.

Standard Chartered economists Anubhuti Sahay and Saurav Anand highlight India’s rapidly rising reliance on Russian Oil, now at 44% of crude imports since the Middle East crisis, up from 2% in 2021.

United States S&P Global Composite PMI registered at 58.4 above expectations (0) in September

United States S&P Global Manufacturing PMI came in at 57, above forecasts (53.5) in September

United States S&P Global Services PMI above expectations (56) in September: Actual (58.7)

Kit Juckes at Societe Generale argues that Swedish Krona (SEK) is poised to benefit from Sweden’s superior growth outlook and expected Riksbank tightening.

Commerzbank’s Antje Praefcke reviews the Hungarian Central Bank decision to keep the key rate at 5.50% while lowering its medium-term inflation target to 2.5% from 2028. The MNB slightly raised its 2027 inflation forecast and will move to eight policy meetings per year.

EUR/CAD halts its four day-winning streak, trading around 1.6090 during the European hours on Wednesday. The currency cross is under pressure as the Euro (EUR) holds losses following the release of the latest HCOB Purchasing Managers’ Index (PMI) data for Germany and the broader Eurozone.

DBS Group Research economist Philip Wee expects the Swiss National Bank to keep its policy rate unchanged at 0% at the September 24 meeting, despite higher energy prices and a modest uptick in headline inflation.

The United Kingdom (UK) S&P Global Composite Purchasing Managers' Index (PMI) expands at a moderate pace to 51.7 in September. The data was already anticipated to arrive lower at 52.0 from 52.5 in August.

USD/IDR loses ground for the second successive day, trading around 17,850 during European hours on Wednesday. The pair holds losses as the Indonesian Rupiah (IDR) remains subdued following the release of Bank Indonesia (BI) interest rate decision.

ING strategist Frantisek Taborsky says the National Bank of Hungary (NBH) delivered an expected pause in rate cuts and lowered its inflation target to 2.5%, creating a supportive backdrop for the Hungarian Forint.

Deutsche Bank strategists note that United States (US) equities finished virtually flat, as strength in technology and semiconductor stocks offset a sharp decline in financials.

Danske Research Team notes Brent crude trading near USD 98/bbl after six straight sessions of declines, with Oil acting as the dominant intraday driver for broader markets.

The GBP/USD pair attracts some sellers to around 1.3310 during the early European trading hours on Wednesday. The British Pound (GBP) weakens against the US dollar (USD) as the UK’s fiscal outlook has worsened, piling pressure on UK Chancellor John Healey ahead of the first budget. 

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the third consecutive day and trading around 100.70 during Asian hours on Wednesday.

The preliminary reading of India’s HSBC Manufacturing Purchasing Managers Index (PMI) jumped to 55.7 in September versus 52.8 prior, the latest data published by S&P Global and HSBC Bank showed on Wednesday.