The Pound Sterling remains under pressure as FX traders ponder the election risks presented now that the Prime Minister has approval for a December general election. Analysts say that the outcome of the general election, which is scheduled for December 12th, is uncertain given the erosion of party support, on both sides, in recent months. Markets are generally of the sentiment that the Conservative party will maintain control, though analysts are somewhat what skeptical. Currency strategists expect higher volatility than normal for Sterling, in the $1.25 to $1.30 range, until after the election, with support at least found now that the fear of a hard Brexit is no longer a threat.
The GBP/USD was higher at $1.2886, a gain of 0.1749% as of 11:26 am in London; the pair is off the session peak of $1.29064. The EUR/GBP is lower at 0.8627 Pence, down 0.869%, with a daily trading range thus far of 0.86168 Pence and 0.86486 Pence.
Focus on the Fed
In the United States, FX traders are waiting for today's preliminary data on growth for the 3rd quarter. Analysts polled have predicted a decline to 1.7% from the previous 2.0%, annualized, Then later today, the US Federal Reserve is set to release its monetary policy decision for the ,month, with the consensus of analysts expecting a drop in the borrowing rate of 25 basis points to 1.75%. Traders are also anxious to see how today's growth data will be reflected in the Fed's policy statement and if the outlook will shift as a result.