| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:45 | France | CPI, m/m | May | 0.5% | 0% | 0.0% |
| 06:45 | France | CPI, y/y | May | 2.2% | 2.2% | 2.3% |
| 09:00 | Eurozone | Trade balance unadjusted | April | 24.1 | 20 | 15 |
GBP traded mixed against other major currencies in the European session on Friday as investors prepared for the Bank of England’s policy meeting next week.
The pound advanced versus AUD, EUR, and SEK but weakened versus JPY, CAD and USD.
Markets are betting that the BoE's benchmark rate will be kept at 5.25% when the British central bank announces the outcomes of its June meeting next Thursday. Earlier this morning, the odds of no change in the BoE’s Bank Rate were pegged at 91%, according to Reuters.
While headline inflation in the UK decelerated to 2.3% YoY in April, the lowest level since September 2021, closing to the BoE's 2% target, it was much higher than anticipated in the key services sector, and 6% YoY pay growth in the three months to April remained roughly double the level consistent with the target. This does not support the case for the June rate reduction by the BoE.
Markets will scrutinize Britain’s central bank’s policy statements for clues on the rate path.