Foreign exchange market. Asian session: the pound advanced ahead of BOE meeting

Economic calendar (GMT0):

Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

01:30 Australia Changing the number of employed June 39.9 -5 7.3

01:30 Australia Unemployment rate June 5.9% 6.1% 6.0%

01:30 China PPI y/y June -4.6% -4.5% -4.8%

01:30 China CPI y/y June 1.2% 1.3% 1.4%

06:00 Germany Current Account May 19.6 11.1

06:00 Germany Trade Balance May 22.1 21 22.8

06:00 Japan Prelim Machine Tool Orders, y/y June 15% 6.6%

The sterling advanced slightly ahead of today's BOE monetary policy meeting. Some investors expect the central bank to start raising rates in the middle of 2016. Officials forecast policy tightening to be gradual. Earlier BOE's McCafferty said that the bank might raise rates at the end of the current year depending on wage growth and the economic situation on the whole.

The yen is falling against the dollar after yesterday's gains.

The Australian dollar advanced after June employment data came in better than expected. The unemployment rate rose to 6.0% in June compared to 5.9% in May (still below expectations for a 6.1% reading). Employment Change came in at +7,300, while economists expected a flat reading after a 40,000 gain reported previously.

EUR/USD: the pair traded around $1.1060-80 in Asian trade

USD/JPY: the pair rose to Y121.30

GBP/USD: the pair traded around $1.5355-80

The most important news that are expected (GMT0):

(time / country / index / period / previous value / forecast)

11:00 United Kingdom BoE Interest Rate Decision 0.5% 0.5%

11:00 United Kingdom Asset Purchase Facility 375 375

11:00 United Kingdom MPC Rate Statement

12:15 Canada Housing Starts June 201.7 190

12:30 Canada New Housing Price Index, MoM May 0.1% 0.1%

12:30 U.S. Initial Jobless Claims July 281 275

12:30 U.S. Continuing Jobless Claims June 2264 2248