Ella 
In early Asian trading on Thursday, GBP/USD strengthened below the mid-1.2600 level. The focus will turn to the UK and the UK S&P Global Purchasing Managers Index (PMI). GBP/USD is currently trading around 1.2638, up 0.04% on the day.
Minutes from the Fed’s January meeting showed that most participants highlighted the risks of easing the stance of monetary policy too quickly, while some noted the risk that progress toward price stability could stall. Federal Reserve policymakers stressed the importance of carefully assessing the economy’s reported economic data when judging whether inflation is continuing to fall toward its 2% target.
On Wednesday, Bank of England (BoE) policymaker Swati Dhingra said delaying an interest rate cut would come at a cost to living standards and could trigger a hard landing for the British economy. Dhingra further pointed out that UK inflation is already on a firm downward path, and she reiterated the case for easing monetary policy.
Bank of England Governor Andrew Bailey said Britain’s inflation rate has fallen “very rapidly” and the technical recession the UK economy entered last year is likely to have little impact. He added that the central bank does not need inflation to return significantly to target before cutting interest rates. Upbeat comments from Bank of England Governor Bailey provided some support for the pound (GBP) and acted as a tailwind for GBP/USD.
Next, traders will focus on the UK S&P Global/CIPS PMI for February and the US S&P Global PMI for February. In addition, Thursday will also release the number of Americans filing initial jobless claims last week, existing home sales and the Chicago Fed National Activity Index. Fed officials Cook, Kashkari, Jefferson and Harker will deliver speeches.
