The Euro (EUR) holds firm against the British Pound (GBP) on Thursday, stabilising after coming under pressure in the previous session amid rising speculation that the European Central Bank (ECB) could cut interest rates later this year. At the time of writing, EUR/GBP is trading flat around the 0.8660 mark in thin liquidity conditions. Austrian central bank Governor Martin Kocher said this week that a persistently stronger Euro could eventually force policymakers to respond. However, the ECB is still widely expected to keep policy unchanged at its next meeting on February 4-5. Looking ahead, the focus in the Eurozone will turn to Friday’s releases of preliminary fourth-quarter GDP figures and the Unemployment Rate.