The Sterling pound today traded sideways against the US dollar as UK political parties started campaigning in readiness for the UK December 12 elections. The GBP/USD currency pair had a muted reaction to the upbeat Markit/CIPS UK manufacturing PMI data but fell on the robust US non-farm payrolls report before rallying higher after later US releases.
The GBP/USD currency pair today traded within a tight range marked by a high of 1.2972 and a low of 1.2934 and was trading near its daily lows at the time of writing.
Today’s session was marked by a lack of volatility in most pound pairs as investors took a breather after the cable’s 4-day rally. However, investors remain cautious towards the pound given the prospect that the December general election may result in a hung parliament. Boris Johnson‘s Conservative Party is leading in the polls, but things could change before the election. Nigel Farage‘s Brexit Party is likely to win some seats, which could deny both the Labour Party and the Tories a governing majority leading to a minority government or a coalition. The pair rallied slightly after the release of the Markit/CIPS UK manufacturing PMI for October, which came in at 49.6 versus the expected 48.1.
The pair fell briefly after the release of the upbeat US non-farm payrolls report by the Bureau of Labor Statistics. The pair later rallied following the release of the weak US ISM manufacturing PMI for October, which was recorded at 48.3 versus consensus estimates of 48.9.
The currency pair’s performance over the coming weekend is likely to be affected by geopolitical events.
The GBP/USD currency pair was trading at 1.2942 as at 16:17 GMT, having fallen from a high of 1.2972. The GP/JPY currency pair was trading at 139.98 having risen from a low of 140.15.
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