Most strategists are not expecting the bank to announce new quantitative easing measures or cut interest rates. According to SONIA implied rates, markets are pricing in a 26% chance of a 25 basis point cut on Thursday.

Ian Stannard, senior currency strategist from BNP Paribas, said the Bank of England decision is going to be a nonevent for currency markets. "I just don't think we are going to see anything new from the central bank," he said.

Ahead of the central bank decision, markets will receive the UK trade balance for February. Economists expect the trade deficit to narrow slightly and show a decline of £7.6 million, down from January's trade deficit of £7.7 million.

In more data, markets will receive the final print of German CPI for March. Economists are expecting inflation to continue to fall, showing decline of 0.1% following the previous increase of 0.6%. The European harmonized rate is expected to remain stable at 0.2%.

The final report of interest will be German industrial production for February, which is expected to show more declines. Economists are expecting production to fall 3.0% for the month following a 7.5% decline in January.

All times in EDT.

2:00 DE Consumer Price Index (M/M) March Final Exp: -0.1% Prior: +0.6%

2:00 DE Consumer Price Index (Y/Y) March Final Exp: +0.5% Prior: +1.0%

2:00 DE CPI - EU Harmonised (M/M) March Final Exp: -0.2% Prior:-0.2%

2:00 DE CPI - EU Harmonised (Y/Y) March Final Exp: +0.4% Prior: +0.4%

2:00 JP Machine Tool Orders (Y/Y) MAR Preliminary Prior:-84.4%

4:00 IT Industrial Production (M/M) (SA) February Exp: -1.5% Prior:-0.2%

4:00 IT Industrial Production (Y/Y) (WDA) February Exp: -17.5% Prior:-16.7%

4:00 IT Industrial Production (Y/Y) (NSA) February Exp: -21.0% Prior:-21.9%

4:00 EU ECB Publishes April Monthly Report

4:30 GB PPI Input NSA (M/M) March Exp: +0.9% Prior: +0.6%

4:30 GB PPI Input NSA (Y/Y) March Exp: -0.7% Prior: +0.5%

4:30 GB PPI Output (M/M) (NSA) March Exp: +0.1% Prior: +0.1%

4:30 GB PPI Output (Y/Y) (NSA) March Exp: +2.1% Prior: +3.1%

4:30 GB PPI Output Core NSA (M/M) March Exp: +0.1% Prior: +0.0%

4:30 GB PPI Output Core NSA (Y/Y) March Exp: +3.1% Prior: +3.7%

4:30 GB Visible Trade Balance February Exp: -£7600 Prior:-£7745

4:30 GB Trade Balance Non euro zone February Exp: -£5500 Prior:-£5704

4:30 GB Total Trade Balance February Exp: -£3450 Prior:-£3585

6:00 DE Industrial Production (M/M) (SA) February Exp: -3.0% Prior:-7.5%

6:00 DE Industrial Production (Y/Y) (NSA WDA) February Exp: -21.7% Prior:-19.3%

7:00 GB Bank of England Announces Interest Rate Decision Exp: 0.5% Prior: 0.5%

12:00 EU ECB's Mersch Speaks at an event in Luxembourg

By Neils Christensen, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it

CEP Newswires - CEP News © 2009. All Rights Reserved. www.economicnews.ca

The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News.

A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.