In his text, Deleuze and the History of Mathematics, Simon Duffy writes:
Leibniz also thought the following to be a requirement to continuity: "When the difference between two instances in a given series, or in whatever is presupposed, can be diminished until it becomes smaller than any given quantity whatever, the corresponding difference in what is sought, or what results, must of neccesity also be diminshed or become less than any given quantity whatever".
Leibniz, Philosophical Papers and Letters, 2nd ed, Ed & Trans. L.Loemker
This sounds very close to the traditional epsilon & delta method of undergraduate analysis which I'd been taught had originated with Cauchy.
How far should Leibniz be credited with the idea of continuity as traditionally understood in mathematics?


"the traditional epsilon & delta method of undergraduate analysis which I'd been taught had originated with Cauchy": you have been taught a misconception. Cauchy defined continuity as follows: if $\alpha$ is infinitesimal then $f(x+\alpha)-f(x)$ is also infinitesimal. See Cours d'Analyse. Notice that there are no epsilons or deltas here, only infinitesimals. Cauchy consistently gave this definition of continuity starting in his 1821 textbook until as late as his 1853 paper clarifying the hypothesis of his "sum theorem"; see this article. As you noticed, Leibniz authored very similar formulations but did not really think of this as a property of functions (which weren't introduced until Euler). More on Leibniz here.
For a recent paper trying to set the record straight on Cauchy you can read this.