- The Pound Sterling (GBP) is rising slightly, approaching 1.2980 against the U.S. Dollar (USD) as anticipation builds for the U.S. presidential election.
- The U.S. Dollar Index (DXY) has dipped to around 103.80 amid shifting market dynamics influenced by polling that shows Vice President Kamala Harris leading former President Trump.
Pound Sterling Moves Higher on U.S. Presidential Election Day
The Pound Sterling (GBP) experiences a slight uptick, approaching 1.2980 against the U.S. Dollar (USD) during Tuesday’s London session. The GBP/USD pair is rising in anticipation of the U.S. presidential election, set to begin in the North American session. Meanwhile, the U.S. Dollar Index (DXY), which measures the Greenback's value against six major currencies, has dipped slightly to around 103.80.
The Greenback has undergone a significant unwinding of long positions following the Des Moines Register/Mediacom Poll, which indicates that current Vice President Kamala Harris holds a three-point lead over former President Donald Trump in Iowa—a state Trump won decisively in both 2016 and 2020. The U.S. Dollar had a strong rally in October as traders anticipated Trump’s victory, given that his protectionist policies are expected to bolster the Greenback's valuation.
GBP/USD Forecast: U.S. Election Jitters May Limit Pound Sterling's Rebound
GBP/USD climbed toward 1.3000 after beginning the week with a bullish gap, but it experienced a slight retreat in the latter half of Monday. The pair remains in positive territory during Tuesday's European morning as investors grow increasingly anxious in anticipation of the U.S. presidential election.
The U.S. Dollar (USD) faced significant selling pressure early on Monday, as betting sites indicated that Kamala Harris could emerge victorious. However, later in the day, bearish trends in Wall Street provided the USD with safe-haven demand, contributing to a shift in market dynamics.
