Ella 
In early Asian trading on Thursday, GBP/USD was still limited to the trading range of 1.26-1.28. The Bank of England will announce its interest rate decision tonight, and the market is generally expected to hold steady. The pair is currently trading around 1.2678, up 0.04% on the day.
The Federal Open Market Committee (FOMC) unanimously agreed to keep the benchmark federal funds rate at a range of 5.25% to 5.5% for the fourth consecutive month. The Committee will remain patient to ensure that lower inflation remains sustainably within the 2 percent target. Federal Reserve Chairman Jerome Powell closed the door on the possibility of a rate cut in March, but markets still judge the May FOMC meeting as the meeting at which the Fed is most likely to begin easing policy.
In terms of sterling, the Bank of England is widely expected to maintain interest rates at 5.25% on Thursday. Investors will still be watching the policy outlook and rhetoric for hints on future rate cuts. The labor market is showing signs of rebalancing, but the fragile economic outlook may be a factor forcing Bank of England policymakers to discuss a rate cut. This in turn could put some selling pressure on the pound.
The Bank of England monetary policy meeting and a speech by Bank of England Governor Bailey will be highlighted on Thursday. In terms of U.S. economic data, the country will release the number of initial jobless claims last week and the ISM manufacturing index. The much-anticipated U.S. non-farm payrolls report will be released on Friday, with the non-farm payrolls expected to grow by 180,000 in January.
