The British Pound weakened against the other major currencies in the early European session on Friday, after Bank of England Deputy Governor Ben Broadbent said there is no urgency to raise U.K. interest rates at present and the recent oil prices drop may keep the British inflation below the target level.

While speaking to an interview on the BBC Radio 5, Broadbent said that the recent drop in oil prices is likely to keep the British inflation target of below 1 percent. He also said that a longer-term decline in oil prices was "a net good" for the U.K. economy.

Broadbent said that there is no urgent need to raise interest rates. Also, lower CPI may be having some impact on wages, he added.

"While there's no certainty, no great urgency to raise interest rates at the moment, nor do I think we're in a place where we're having immediately to ease it."

In the Asian trading today, the pound held steady against its major rivals.

In the early European trading, the pound fell to more than a 2-week low of 0.7713 against the euro, from an early high of 0.7677. On the downside, 0.78 is seen as the next support level for the pound.

Against the Swiss franc, the yen and the U.S. dollar, the pound dropped to a 10-day low of 1.4416, an 8-day low of 169.49 and a 2-day low of 1.4513 from early highs of 1.4490, 170.53 and 1.4591, respectively. If the pound extends its downtrend, it is likely to find support around 1.42 against the franc, 164.00 against the yen and 1.42 against the greenback.

Looking ahead, at 7:00 am ET, European Central Bank Vice President Vitor Constancio is expected to speak on the occasion of the awarding of the German Bernacer Prize organized by the Bank of Spain in Madrid.

In the New York session, U.S. trade balance for December, U.S. non-farm payrolls report for January, Canadian trade balance data for December, Canada Ivey purchasing managers index for January, U.S. Baker Hughes rig count data and U.S. consumer credit for December are set to be published.

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