The euro traded in a tight range on Thursday morning as markets waited for the European Central Bank’s rate decision and press conference, scheduled for 12:15 BST. With markets broadly expecting a 25bps rate cut, attention will turn to the ECB’s tone on future easing and growth risks.
EUR/USD was last seen at 1.1422, up just 0.05%, reflecting caution across the board. Traders are watching to see whether the ECB signals a pause or leaves the door open for further cuts in H2 2025.
GBP/USD: Holding Above 1.3550 as Dollar Remains Soft
Sterling edged higher to 1.3568, gaining 0.11% on the day. Despite limited UK data this week, the pound remains resilient, supported by stable rate expectations and mild dollar softness. Market focus remains on global risk tone and euro spillover from today’s ECB decision.
USD Outlook: Waiting on ECB, Eyes on NFP Tomorrow
The dollar is trading slightly weaker on Thursday as traders brace for policy divergence headlines out of Frankfurt. The U.S. dollar index is flat, with no major data due until tomorrow’s non-farm payrolls report, which is expected to show a modest rise in jobs and steady wage growth.
CAD and EMFX: Calm After BoC Hold
USD/CAD sits at 1.3660, down 0.13%, after the Bank of Canada held rates at 2.75% on Wednesday and signalled a “wait and assess” stance. EM currencies are stable overall, with USD/MXN at 19.19 and USD/INR at 85.69.
Key Currency Levels – As of 08:21 BST
| Pair | Price | Daily Change |
|---|---|---|
| EUR/USD | 1.1422 | ▲ 0.05% |
| GBP/USD | 1.3568 | ▲ 0.11% |
| USD/JPY | 143.13 | ▲ 0.25% |
| USD/CAD | 1.3660 | ▼ 0.13% |
| USD/CHF | 0.8190 | ▲ 0.02% |
| USD/INR | 85.6950 | ▼ 0.26% |
| USD/MXN | 19.1972 | ▲ 0.01% |
Looking Ahead
- 12:15 BST – ECB Interest Rate Decision
- 12:45 BST – ECB Press Conference
- Friday, 7 June – U.S. Non-Farm Payrolls Report
Volatility expected around midday as the ECB moves. Traders should stay alert for policy language, growth outlook updates, and market reaction across EUR crosses.
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