Major currencies held steady mid-week as the dollar regained its footing ahead of upcoming U.S GDP and inflation figures. The yen stabilised, whilst both the pound and the euro moved little in quiet trading.
The world’s most-watched currency pairs saw little movement mid-week as the US dollar steadied ahead of key GDP and inflation data due later this week. Traders remained cautious amid subdued volumes, whilst the Japanese yen regained some stability following its recent volatility.
EUR/USD Holds Steady Near 1.16 as Traders Await Fresh Direction
The euro hovered near the 1.16 level against the U.S dollar, showing limited momentum as investors looked for direction from upcoming U.S figures and European business surveys. As U.S-China trade tensions eased slightly, demand for the US dollar remains underpinned by expectations of slow but resilient U.S growth.
The euro continues to struggle to gain traction and analysts observed that traders are reluctant to commit until the European Central Bank communicates its policy outlook over the next weeks.
Looking for a recommended forex broker? See our reviewed and rated Best Forex Brokers for 2025.
GBP/USD Softens Below 1.34 After UK Inflation Holds Steady
The british sterling slipped slightly below 1.34 against the dollar after official data showed UK inflation held at 3.8 % in September. The report weighed on sentiment and reinforced expectations that the Bank of England may continue its cautious stance on rate cuts.
USD/JPY Hovers Around ¥150.50 as Yen Finds Stability
The Japanese yen stabilised near ¥150.50, consolidating after a turbulent stretch that saw speculation of potential Bank of Japan intervention. The yen’s modest recovery comes as investors weigh Tokyo’s fiscal outlook and seek safe-haven assets following a sharp pullback in gold prices earlier this week.
AUD/USD Holds Near 0.65 Despite Weaker China Data
The Australian dollar hovered around 0.65, showing resilience despite weaker-than-expected Chinese import figures and ongoing caution in commodity markets. Sentiment toward the AUD remains closely linked to China’s trade and industrial trends, although firm iron-ore prices and relatively stable risk appetite have helped limit downside pressure.
Traders are keeping a close eye on the Reserve Bank of Australia’s next meeting for signs of any policy shift as inflation remains elevated and growth momentum softens.
USD/CAD Range-Bound as Oil Prices Rebound
The Canadian dollar traded within a narrow band against its U.S counterpart, with USD/CAD hovering around 1.37 as oil prices ticked higher. Brent crude climbed more than 1% on Tuesday, lending modest support, although the broader market remained cautious and kept currency moves contained. Attention will now turn towards upcoming Canadian retail sales data and U.S energy-inventory reports, which could provide a short-term direction for the pair.
Upcoming: Focus on Data and Central Banks
With few major releases scheduled mid-week, forex markets are likely to stay subdued until the next round of U.S economic data lands. Traders will be watching for any surprises in GDP growth or core inflation figures that could influence expectations for central-bank policy into November.
If you’re new to forex trading, take a look at our full guide to Currency Trading Basics to get a good understanding about how forex works, what influences prices, what are the most popular currency pairs and more.
For more currency news and latest financial market developments like this, bookmark our Market News page.
