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Pound-Australian Dollar could remain sensitive to risk appetite, with a souring market mood likely to weigh on the Aussie. The Pound Australian Dollar (GBP/AUD) exchange rate fluctuated on Thursday as markets reacted to Australia’s latest jobs report. At the time of writing, GBP/AUD was trading at AU$1.8813, virtually unchanged on the day.

Pound-Euro could edge higher if German consumer confidence deteriorates, while hawkish BoE signals may help keep Sterling supported. The Pound to Euro (GBP/EUR) exchange rate was left to trade at a one-week low on Thursday as markets welcomed a stronger-than-expected improvement in German business sentiment. At the time of writing, the GBP/EUR exchange rate was trading at around €1.1625. A modest decline from the start of Thursday’s session.

Pound-Dollar could remain under pressure if Fed hike bets stay elevated, although weaker US durable goods orders may offer Sterling some respite. The Pound US Dollar (GBP/USD) exchange rate fell to a three-month low on Thursday as Federal Reserve interest rate hike bets boosted USD. At the time of writing, GBP/USD was trading at $1.3226, having bounced off its lowest point of $1.3215 but still down on the day.

GBP/USD has fallen through Lloyds' initial downside levels, leaving its June support near 1.3140 within reach. The British Pound to Dollar (GBP/USD) exchange rate has broken below both 1.3300 and 1.3274, bringing the deeper support identified by Lloyds into focus. Pound Sterling traded at 1.3215 on Thursday, down 0.17% on the day after Wednesday's 0.79% fall. The decline has carried the Pound beyond the risks Lloyds highlighted on 21 September, when it classified the daily trend as "Lower".

Pound Sterling is testing JPMorgan's preferred trading range, while ING expects excessive UK rate-hike pricing to unwind. JPMorgan's tactical backing for the British Pound against the Euro is being tested as Sterling slips towards its September lows. The British Pound to Euro exchange rate (GBP/EUR) traded at 1.1621 on Thursday afternoon, down 0.09% following Wednesday's 0.21% decline.

ING and MUFG say Fed expectations kept the US Dollar supported during oil's retreat, with cheaper energy offering little relief to the Euro. Oil's retreat below $100 a barrel earlier this week failed to dislodge the US Dollar, challenging hopes that cheaper energy would cool expectations for further Federal Reserve tightening. Brent has since rebounded above $105 on Thursday, but its earlier decline exposed how firmly investors were holding on to the prospect of higher US rates.

Foreign currency strategists at Crédit Agricole expects gradual Mexican Peso depreciation throughout 2027, despite recognising the support that higher yields give emerging-market currencies. The Mexican Peso is among the currencies Crédit Agricole expects to weaken even as much of the emerging-market sector withstands higher US interest rates. The bank forecasts the US Dollar to Mexican Peso exchange rate (USD/MXN) at 18.00 in December 2026, rising to 18.25 in March 2027 and 18.50 in June.

Rabobank's Euro recovery forecast depends on a retreat in Fed hike expectations, while the Iran war constrains near-term gains. Rabobank has lowered its one-month Euro forecast from 1.16 to 1.14, while retaining a three-month recovery target of 1.16. The Euro to US Dollar exchange rate (EUR/USD) stood near 1.1377 on Thursday, down 0.04% on the day after Wednesday's 0.58% decline.

The Euro-to-Dollar rate has already crossed ING's downside reference area, leaving its 1.160 year-end forecast dependent on a reversal in US Dollar momentum. The Euro to US Dollar exchange rate (EUR/USD) edged up to 1.1387 on Thursday after falling through the 1.140-1.142 area ING had identified just a day earlier. A modest 0.05% recovery followed Wednesday's 0.58% decline, leaving the Euro close to its September low near 1.1370.

The Pound-Canadian Dollar rate could remain under pressure if Canadian retail sales rebound, while dovish BoE comments may add to Sterling’s downside. The Pound to Canadian Dollar (GBP/CAD) exchange rate drifted lower on Wednesday, following the publication of a weaker-than-expected services PMI from the UK. At the time of writing, the GBP/CAD exchange rate was trading at CA$1.8739. Down roughly 0.2% from the start of Wednesday’s session.