UK house prices growth slowed more than expected in January largely reflecting high mortgage rates, data published by the Nationwide Building Society showed on Friday. House prices gained only 0.1 percent in January. This follows a 0.7 percent increase in December and also came in weaker than economists' forecast of 0.3 percent.

Flash consumer prices, retail sales and unemployment figures from Germany and house prices from the UK are the top economic news due on Friday. At 2.00 am ET, the UK Nationwide house price data is due. Economists forecast house prices to grow 4.3 percent on a yearly basis in January following a 4.7 percent rise in December.

The U.S. dollar fell after data showed the U.S. economic growth slowed in the fourth quarter of 2024, but climbed higher as the session progressed on Thursday as traders weighed the latest batch of economic data and the Federal Reserve's monetary policy announcement earlier this week.

The European Central Bank lowered its interest rates for a fourth policy session in a row on Thursday and is likely to opt for more easing going forward as policymakers seek neutrality amid a slump in Eurozone growth and expectations for inflation to return to target over the course of the year.

The European Central Bank lowered its interest rates for a fourth policy session in a row on Thursday and is likely to opt for more easing going forward as policymakers seek neutrality amid a slump in Eurozone growth and expectations for inflation to return to target over the course of the year.

After reporting four straight monthly increases by U.S. pending home sales, the National Association of Realtors released a report on Thursday showing pending home sales unexpectedly pulled back sharply in the month of December. NAR said its pending home sales index plunged by 5.5 percent to 74.2 in December after jumping by 1.6 percent to a downwardly revised 78.5 in November.

U.S. economic growth in the fourth quarter of 2024 fell short of economist estimates, according to a report released by the Commerce Department on Thursday. The report said gross domestic product shot up by 2.3 percent in the fourth quarter after surging by 3.1 percent in the third quarter. Economists had expected GDP to jump by 2.6 percent.

A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended January 25th. The Labor Department said initial jobless claims fell to 207,000, a decrease of 16,000 from the previous week's unrevised level of 223,000. Economists had expected jobless claims to slip to 220,000.

Mortgage approvals in the UK increased unexpectedly in December as home buyers rushed to avoid higher stamp duty from April, official data revealed Thursday. The number of mortgage approvals for house purchases increased to 66,500 in December from 66,000 in November, the Bank of England said. Approvals were expected to fall to 65,000.

The euro area economic growth ground to a halt in the fourth quarter as output shrunk in Germany and France and remained flat in Italy, leaving Spain as the only economy in the big four to continue expansion, adding hopes of another interest rate cut by the European Central Bank later on Thursday.

The German economy logged an unexpected contraction in the fourth quarter on weaker exports, adding fears of recession, preliminary data from Destatis showed Thursday. Gross domestic product fell 0.2 percent from a quarter ago, confounding expectations for an expansion of 0.1 percent. This follows a 0.1 percent sequential growth in the third quarter.

The Philippine economy expanded at a slower than expected pace in the fourth quarter as severe storms damped farm output and geopolitical tensions weighed on manufacturing, official data showed on Thursday. Consequently, the economy missed its full year official growth target in 2024. Gross domestic product grew 5.2 percent year-on-year in the fourth quarter, the same pace as in the third quarter.

The French economy contracted for the first time in nearly two years in the fourth quarter as the positive impact of the Paris Olympics and Paralympic Games faded, official data revealed Thursday. Gross domestic product shrank 0.1 percent sequentially after expanding 0.4 percent in the third quarter, first estimate from the statistical office INSEE showed.

The monetary policy announcement from the European Central Bank and preliminary GDP data from the major euro area economies are due on Thursday, headlining a hectic day for the European economic news. At 1.30 am ET, France's statistical office INSEE publishes flash GDP and consumer spending data. The economy is expected to remain flat sequentially in the fourth quarter after rising 0.4 percent in

The U.S. dollar climbed higher on Wednesday after the Federal Reserve left interest rates unchanged and noted inflation remains "somewhat elevated."

After cutting interest rates for three straight meetings, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged following its first monetary policy meeting of 2025. The Fed said it decided to maintain the target range for the federal funds rate at 4.25 to 4.50 percent in support of its dual goals.

The Bank of Canada on Wednesday announced its widely expected decision to lower interest rates by a quarter point, noting consumer price inflation remains close to 2 percent and the economy is in excess supply. After cutting rates by 50 basis points at each of its two previous meetings, the Bank of Canada decided to lower the overnight rate by 25 basis points to 3 percent.

Eurozone lending to private sector grew at a faster pace in December on falling interest rates and the broad money supply logged a slower expansion, data from the European Central Bank revealed Wednesday. Despite tightening credit conditions, adjusted loans to the private sector gained 2.0 percent compared to a 1.5 percent rise in November.

Sweden's central bank reduced its benchmark rate by a quarter-point on Wednesday to further support the economy and stabilize inflation at the target and also signaled that the easing cycle is coming to an end. The Executive Board of Riksbank decided to cut the policy rate by 25 basis points to 2.5 percent. The outcome of the meeting widely matched expectations.

The U.S. dollar strengthened against other major currencies in the European session on Wednesday, as traders await the U.S. Fed's interest rate decision later in the day.

German consumer sentiment is set to weaken in February, dampening hopes of a cautious recovery at the start of the year, survey data jointly published by the market research group GfK and the Nuremberg Institute for Market Decisions showed on Wednesday. The consumer climate index fell unexpectedly to -22.4 in February from revised -21.4 in January. The indicator was expected to rise to -20.5.

The Australian dollar weakened against other major currencies in the Asian session on Wednesday, as softer Australian inflation data signaled a potential interest rate cut by the RBA in February.

Consumer confidence from Germany and monetary aggregates from the euro area are due on Wednesday, headlining a light day for the European economic news. At 2.00 am ET, the market research GfK publishes German consumer sentiment survey results. The forward-looking consumer sentiment index is expected to rise to -20.5 in February from -21.3 in January.

Australia's consumer price inflation eased in December to the lowest since early 2021 on falling electricity and auto fuel prices, the Australian Bureau of Statistics reported Wednesday. Consumer prices logged an annual increase of 2.4 percent in the December quarter, following a 2.8 percent rise in the preceding period. This was the lowest rate since March 2021.

The U.S. dollar firmed against its major counterparts on Tuesday after President Donald Trump announced plans to impose tariffs on imported computer chips, pharmaceuticals, and steel, to encourage domestic production of these goods.