EUR/GBP (euro/British pound sterling)

Inflation below target suggests that the cycle of loosening will probably continue up to summer 2025.

A soft landing for the European economy could be slipping away, increasing pressure on policymakers to step up the pace of interest-rate cuts. Business surveys out Monday indicated that activity in the eurozone's two largest economies was much weaker than expected in September. Here is how markets reacted: + **An October rate cut is now on the table.** Derivatives markets show investors see the European Central bank's key rate at 3.31% next month, meaning they are pricing in almost a full quarter-point reduction from the current rate of 3.5%.

US traders are looking to the Federal Reserve's interest rate decision, as well as key inflation data later on in the week.

The move by sites such as Booking.com, Kiwi and Kayak led to Ryanair slashing prices on some flights in a bid to fill seats.

Three likely cuts to the funds rate next year have weighed on the greenback despite mostly positive economic data.

The British pound initially sold off during the trading session on Thursday but has turned around since then to show signs of hesitation to continue selling off.