Forex Today: ECB policy decisions, US data to lift market volatility

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Here is what you need to know on Thursday, October 17: The US Dollar (USD) continued to gather strength against its major rivals midweek, with the USD Index rising 0.3% to register its highest daily close in over two months on Wednesday.

Here is what you need to know on Thursday, October 17: The US Dollar continued to gather strength against its major rivals midweek, with the USD Index rising 0.3% to register its highest daily close in over two months on Wednesday. On Thursday, the European Central Bank will announce monetary policy decisions. In the American session, the US economic calendar will feature weekly Initial Jobless Claims data, alongside the Retail Sales and Industrial Production figures for September.

The pair struggles to find a foothold in the European morning on Thursday and trades at its weakest level since early August at around 1.0850. GBP/USD declined sharply on Wednesday as the September inflation data from the UK, whichshowed that inflation softened at a faster pace thanforecast, triggered a selloff in Pound Sterling. After losing more than 0.6% on Wednesday, GBP/USD fluctuates in a tight channel below 1.3000 on early Thursday.

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