The Pound Sterling faces pressure against its major peers as all nine BoE MPC members favored a 25-bps reduction in interest rates to 4.5%. Soft CPI inflation data in December and weak labor demand in three months ending November boosted BoE dovish bets.

Sterling was set for its biggest one-day fall since early January on Thursday, after the Bank of England (BoE) cut interest rates and slashed its growth forecasts but warned that inflation will rise "quite sharply" this year.