| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | CPI, m/m | June | 0.1% | 0.1% | 0.1% |
| 06:00 | United Kingdom | Manufacturing Production (MoM) | May | -1.6% | 0.5% | 0.4% |
| 06:00 | Germany | CPI, y/y | June | 2.4% | 2.2% | 2.2% |
| 06:00 | United Kingdom | Industrial Production (MoM) | May | -0.9% | 0.2% | 0.2% |
| 06:00 | United Kingdom | GDP m/m | May | 0% | 0.2% | 0.4% |
GBP appreciated against other major currencies in the European session on Thursday as investors responded to the data, which showed the UK’s economy grew faster than anticipated in May.
The ONS reported earlier this morning that the UK's GDP rose by 0.4% MoM in May after a flat MoM performance in the previous month. Economists had predicted a 0.2% MoM increase. On a YoY basis, the British economy expanded by 1.4%, following an upwardly revised 0.7% gain (from +0.6%) in April. This marked the strongest advance since June 2023 (+1.4%) and exceeded economists’ forecast of +1.2%.
The latest data prompted markets to trim their bets on a rate reduction by the Bank of England in August. According to Bloomberg, markets now see a nearly 45% probability of a cut at the BoE’s August meeting, down from about 50:50 at the start of the day.