| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:55 | Germany | Manufacturing PMI | January | 43.3 | 45.4 | 45.5 |
| 09:00 | Eurozone | Manufacturing PMI | January | 44.4 | 46.6 | 46.6 |
| 09:30 | United Kingdom | Purchasing Manager Index Manufacturing | January | 46.2 | 46.9 | 47.0 |
| 10:00 | Eurozone | Harmonized CPI, Y/Y | January | 2.9% | 2.8% | 2.8% |
| 10:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | January | 3.4% | 3.2% | 3.3% |
| 10:00 | Eurozone | Unemployment Rate | December | 6.4% | 6.4% | 6.4% |
| 12:00 | United Kingdom | BoE Interest Rate Decision | | 5.25% | 5.25% | 5.25% |
GBP fell against most other major currencies in the European session on Thursday as investors waited for the announcement of the Bank of England’s latest policy decision at 12:00 GMT.
Expectations are for the British central bank to maintain its benchmark policy rate unchanged at 5.25%. Investors will pay attention to the rate setters’ views on inflation, economy and potential policy easing.
Currently, markets are fully pricing in a rate cut by the BoE in June.
The BoE's policy announcement will take place hours after the Federal Reserve on Wednesday left its key interest rates unchanged and indicated there would be no reductions in rates until it has gained greater confidence that inflation is moving toward the 2% target. Commenting on the latest decision, the Fed’s chairman Powell specificated that he does not believe that the central bank will reach a level of confidence by its next meeting in March to identify this month as the time to cut rates. As a result, markets trimmed their bets for rate decrease at the Fed’s March gathering. This, in turn, provided support to the U.S. currency.