FOREX TODAY: US GROWTH STATISTICS AND THE ECB'S RATE DECISION WILL INCREASE VOLATILITY

What you should be aware of on Thursday, October 26 is as follows:

Due to the resumption of global concerns, safe-haven flows continue to drive. Later in the day, the European Central Bank (ECB) will announce the information. Following this, President Christine Lagarde will give a speech on the outlook for policy and take questions from the public. The US economic docket will include September Durable Goods Orders, weekly Initial Jobless Claims, and the first estimate of the third-quarter GDP statistics.

Israel increased its airstrikes over Gaza, and Prime Minister Benjamin Netanyahu declared late on Wednesday that the air campaign was that the country readied itself for an invasion of the area on foot. US stock index futures were last seen dropping between 0.3% and 1.25% on the day, reflecting the risk-averse market environment.

As for the US Dollar Index, it continues to rise above 106.50 after seeing gains on Wednesday for the second day in a row, while the benchmark 10-year US Treasury bond is comfortably above 4.9%. In Q3, the US economy is anticipated to grow at a 4.2% annual rate.

USD value for this week

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. The US dollar outperformed the Canadian dollar.

The heat map shows the percentage fluctuations of the major currencies in relation to each other, the left column, and the quotation currency is chosen from the top row. If you choose the Euro in the left column and go down the horizontal line to the Japanese Yen, the percentage change displayed in the box will be EUR (base)/JPY (quote).

US GDP Preview for Q3: When will the preliminary US GDP statistics be released, and how might it affect the EUR/USD？

Following its October policy meeting, the European Central Bank (ECB) is largely expected to maintain key rates. Considering the decline in European and the growing concern over inflation and growth outlook, market participants will be attentively observing the comments. Ahead of the ECB meeting, the EUR/USD pair is still trading relatively quietly at 1.0550.

It is expected that the European Central Bank will hold interest rates for the first time during the current tightening cycle.

The USD/JPY pair reached its highest level in a year on Thursday, breaking above its horizontal rising above 150.50. Nevertheless, the pair dropped sharply after reaching 150.80, indicating that the Bank interfered with the currency market. The prime minister of Japan, Fumio Kishida, had said earlier in the day that the FX intervention was not at odds with the objective of moving money from savings to investments.

The GBP/USD pair closed down on Wednesday, and further losses in the Asian session on Thursday. At the time, pair was down, barely below 1.2100.

Gold was supported by strong demand, jumped to the $1,990 area early on Thursday.