* ECB Interest Rate Decision (Sep) 3.65%, 3.65% forecast, 4.25% previous

*US PPI ex. Food/Energy/Transport (MoM) (Aug) 0.3%, 0.2% forecast, 0.3% previous

*US PPI ex. Food/Energy/Transport (YoY) (Aug) 3.3%, 3.2% forecast

*US Continuing Jobless Claims 1,850K, 1,850K forecast, 1,845K previous

*US Initial Jobless Claims 230K, 227K forecast, 228K previous

* Canada Building Permits (MoM) (Jul) 22.1%, 6.5% forecast, -13.0% previous

EUR/USD: The euro rose against the dollar on Thursday after European Central Bank President Christine Lagarde dampened expectations for an interest rate cut next month and said the bank will let economic data dictate the next policy move.The ECB lowered its deposit rate to 3.5%, as widely expected. The refinancing rate, however, was cut by a much bigger 60 bps to 3.65% in a long-flagged technical adjustment. Traders scaled back their expectations for consecutive rate cuts from the European Central Bank for the remainder of the year on Thursday, as policymakers offered limited guidance on their willingness to pursue further monetary easing. The euro was last up 0.6% at $1.1082. Immediate resistance can be seen at 1.1087(38.2%fib), an upside break can trigger rise towards 1.1170(23.6%fib).On the downside, immediate support is seen at 1.1017(38.2%fib), a break below could take the pair towards 1.0993 (Lower BB).

GBP/USD: The British pound strengthened on Thursday as increased risk sentiment and mixed U.S. economic data supported the currency across the board. The producer price index (PPI) for final demand increased by 0.2% in August, surpassing the 0.1% growth estimate. The core PPI, which excludes volatile food and energy prices, rose 0.3%, exceeding the 0.2% forecast.Additionally, initial claims for state unemployment benefits were reported at 230,000 for the week ending September 7, aligning with expectations. Recent weakening in employment and economic growth data had led to speculation about a potentially larger 50-bps interest rate cut by the Fed, but these expectations diminished following Wednesday's inflation report.Immediate resistance can be seen at 1.3149(38.2%fib), an upside break can trigger rise towards 1.3180(Sep 5th high).On the downside, immediate support is seen at 1.3022(38.2%fib), a break below could take the pair towards 1.3000(psychological level).

USD/CAD: The Canadian dollar weakened against the U.S. dollar on Thursday as support from recent short-covering dissipated and investors anticipated further interest rate cuts by the Bank of Canada to stimulate the domestic economy. Economists have forecasted that Canada's economic growth will likely fall short of the Bank of Canada's expectations for the third quarter. Analysts noted that recent declines in oil prices, a major Canadian export, have contributed to the loonie's weakness. The loonie was trading 0.1% lower at 1.3590 per U.S. dollar, after fluctuating between 1.3566 and 1.3604. On Wednesday, the currency hit its weakest intraday level since August 21 at 1.3622..Immediate resistance can be seen at 1.3624 (38.2%fib), an upside break can trigger rise towards 1.3692(23.6%fib).On the downside, immediate support is seen at 1.3627(50%fib), a break below could take the pair towards 1.3511 (61.8%fib).

USD/JPY: The dollar edged lower against the yen on Thursday following a mixed U.S. PPI report and an increase in weekly jobless claim. Mixed U.S. economic reports cemented expectations for this quarter-point reduction by the Federal Reserve. Initial jobless claims for the week ending September 7 rose by 2,000 to a seasonally adjusted 230,000, meeting forecasts. Meanwhile, August producer prices increased by 0.2%, slightly more than expected, reflecting rising service costs but consistent with moderating inflation. The U.S. rate futures market now reflects only a 27% chance of a 50-bps cut this month, down from 50% on Friday, following a mixed U.S. nonfarm payrolls report.Strong resistance can be seen at 143.71 (Sep 9th high), an upside break can trigger rise towards 145.00 (Psychological level). On the downside, immediate support is seen at 141.90(23.6%fib), a break below could take the pair towards 141.49 (Lower BB).

Equities Recap

European stocks held steady on Thursday after the European Central Bank cut its main interest rate for a second time in three meetings, in line with expectations.

UK's benchmark FTSE 100 closed up by 0.57 percent, Germany's Dax ended up by 1.03 percent, France's CAC finished the day up by 0.52 percent.

Wall Street's main indexes closed higher on Thursday as the latest inflation data strengthened expectations for a 25-basis point rate cut by the Federal Reserve.

Dow Jones closed up by 0.58% percent, S&P 500 closed up by 0.75% percent, Nasdaq settled up by 1.00% percent.

Commodities Recap

Oil prices rose more than 2% on Thursday as producers evaluated the impact on output in the U.S. Gulf of Mexico following Hurricane Francine's passage through offshore oil-producing regions before it was downgraded to a tropical storm.

U.S. West Texas Intermediate crude futures rose by $1.66, or 2.5%, to settle at $68.97 per barrel. Brent crude futures rose by $1.36, or 1.9%, to $71.97 per barrel.

Gold prices surged over 1% to reach a record high on Thursday, driven by expectations of a Federal Reserve interest rate cut next week following U.S. data that indicated a slowing economy.

Spot gold was up 1.7% at $2,554.05 per ounce, as of 02:10 p.m. ET (1810 GMT). U.S. gold futures settled 1.5% higher at $2,580.60