The British pound weakened against the other major currencies in the European session on Thursday, after data showed that the U.K. retail sales rose less-than-expected in September.

Data from the Office for National Statistics showed that the retail sales, excluding auto fuel, advanced 4 percent, but slower than the expected growth of 4.4 percent and August's 6.2 percent expansion.

Meanwhile, sales excluding auto fuel also remained flat in September. Economists had forecast a 0.2 percent rise.

Retail sales volume increased 4.1 percent year-on-year in September. Nonetheless, the pace of growth eased from 6.6 percent in August. Economists had forecast a 4.7 percent annual increase. Also, the 4.1 percent growth was the weakest since June.

In the Asian trading today, the pound held steady against its major rivals.

In the European trading, the pound fell to a 2-day low of 1.2119 against the Swiss franc, from an early high of 1.2168. The pound may test support near the 1.18 region.

Against the euro, the U.S. dollar and the yen, the pound dropped to 0.8949, 1.2263 and 127.12 from early highs of 0.8922, 1.2298 and 127.49, respectively. If the pound extends its downtrend, it is likely to find support around 0.91 against the euro, 1.19 against the greenback and 124.00 against the yen.

Looking ahead, the European Central bank will announce its interest rate decision at 7:45 am ET. The bank is forecast to keep its refi rate at zero percent and the deposit rate at -0.4 percent.

Following the announcement, European Central Bank President Mario Draghi will hold the customary post-meeting press conference.

In the New York session, U.S. weekly jobless claims for the week ended October 15, U.S. existing home sales data, leading indicators, for September, and U.S. Philly Fed manufacturing index for October are set to be published.

At 8:00 am ET, Bank of England Deputy Governor Nemat Shafik is expected to participate in a panel discussion about reform in the financial services industry at the Federal Bank of New York's conference.

At 8:30 am ET, Federal Reserve Bank of New York President William Dudley is scheduled to give welcome remarks at a conference entitled "Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue", in New York.

European Union leaders summit is due to be held in Brussels, later in the day.

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