| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Switzerland | Trade Balance | May | 5.4 | 5.5 | 2.0 |
| 07:30 | Switzerland | SNB Interest Rate Decision | | 0.25% | 0% | 0% |
GBP was little changed against most of its major rivals in the European session on Thursday as investors continued to view the Middle East situation and braced for the outcomes of the Bank of England’s latest policy meeting later today.
The Israel-Iran conflict and the potential involvement of the U.S. in it remain the key theme in the markets. Many media outlets claim that the U.S. is preparing to attack Iran directly in the coming days.
The British central bank will announce the results of its June policy meeting at 11:00 GMT. Markets and economists widely anticipate that the BoE’s policymakers will leave the central bank’s benchmark rate - the Bank Rate - at 4.25% at today’s gathering. Attention will be paid to the UK’s central bank growth and inflation outlook as well as its policy guidance.
Last week’s data releases indicated a weakening economy and cooling labour market in Britain, and yesterday’s CPI inflation figures pointed to slowing but sticky price pressures. Against such an economic backdrop, markets bet on two more 25-basis-point rate reductions by the BoE by the end of the year, with the first move likely coming in August.
In its previous policy statements, the BoE repeated that “a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate” and pledged to “decide the appropriate degree of monetary policy restrictiveness at each meeting.”