Sterling traded near $1.3405 against the U.S. dollar in early Asian trading Tuesday, ending a four-session advance, FXStreet reported, ahead of the Nov. 3 U.S. midterm elections and the Bank of England's Thursday rate decision.
Voters are deciding all 435 seats in the House of Representatives and about one-third of Senate seats. The results will determine which party holds a majority in each chamber for the next two years. Reuters reported that pre-election forecasts favored Democrats winning the House, while Senate control remained less certain. The outlet also described investor concerns about possible changes to AI oversight and federal fiscal policy under different election outcomes.
The Bank of England's next Monetary Policy Committee decision and Monetary Policy Report are scheduled for Thursday, Nov. 5, at 7 a.m. ET (12:00 UTC). At its September meeting, the committee voted 6-3 to keep Bank Rate at 3.75%; the three dissenters favored a quarter-point increase to 4%. The meeting minutes said inflation risks were tilted to the upside.
A Reuters poll of economists forecast a rise to 4% on Thursday, with a 7-2 vote. That is a poll expectation, not a confirmed decision. EconoTimes previously covered sterling's advance against the dollar ahead of the same rate decision.
U.S. labor data are also scheduled this week. The U.S. Bureau of Labor Statistics (BLS) calendar lists September Job Openings and Labor Turnover Survey (JOLTS) data for Tuesday, Nov. 3, at 10 a.m. ET. The October Employment Situation is scheduled for Friday, Nov. 6, at 8:30 a.m. ET.
