| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:45 | France | CPI, m/m | August | 0.2% | 0.6% | 0.5% |
| 06:45 | France | CPI, y/y | August | 2.3% | 1.9% | 1.8% |
| 09:00 | Eurozone | Industrial production, (MoM) | July | 0% | -0.3% | -0.3% |
| 09:00 | Eurozone | Industrial Production (YoY) | July | -4.1% | -2.7% | -2.2% |
GBP traded mixed against other major currencies in the European session on Friday as investors turned their attention to next week's release of the UK inflation data for August and the announcement of a policy decision by the Bank of England.
The pound rose versus AUD, fell versus CHF, EUR, and JPY, and changed little versus USD and CAD.
Economists expect to see evidence of persistent inflation pressures in Britain in the official inflation report, the release of which is scheduled for Wednesday - the day before the announcement of the BoE’s policy update.
If the CPI data are in line with expectations or an upside surprise that would almost certainly cement the case for the BoE to hold off cutting interest rates again next Thursday after a 25 basis-point rate reduction in August.
According to Reuters, markets are now pricing in around an 80% probability that the BoE’s Bank Rate will be left unchanged at 5.00% next week.
Investors will scrutinize the British central bank’s policy statements and the comments of its governor Andrew Bailey on clues for further path of rate decreases.