Sterling ends the week in a reasonably positive place, as the UK looks less likely to leave the European Union without a Brexit deal. Early polls since a general election was voted for on Tuesday, 29 October showed Boris Johnson’s Conservative Party is in the lead, with The Guardian newspaper’s poll tracker indicating the Tories could be ahead by as much as 13 points.
The Pound is enjoying a pre-election boost, trading above $1.2950 and €1.1600 against its closest peers. However, pollsters have got election results wrong before, most famously with the EU referendum in June 2016, and there is a lot of campaigning to be done before 12 December.
Across the pond, the US House of Representatives voted to adopt rules of the impeachment inquiry into Donald Trump over the Ukraine scandal. This will include public hearings that will start in two weeks and puts the country on alert for a political trial of the president. Trump has been accused of putting pressure on Ukrainian President Volodymyr Zelenskiy to investigate his political rival Joe Biden.
Today, the US will release non-farm payroll data, which is expected to show the labour market slowed in October, with new jobs added falling from 136,000 in September to 85,000. On top of this, it is forecast that the unemployment rate could have risen by 0.1 per cent to 3.6 per cent. The labour market has been the shining light of the US economy for some time now, so any sign that it is slipping could have a negative impact on the Dollar.
Fed cuts rates again, may pause for a while