The British pound slipped early on Wednesday after a poll showed a narrowing lead for UK Prime Minister Boris Johnson's Conservative Party in an election scheduled for later in the week, while US dollar movement looked to the Federal Reserve’s policy meeting.
Investors were also focusing on whether US President Donald Trump will impose tariffs on nearly $160 billion worth of Chinese consumer goods from December 15.
Investors have generallybelieved the US tariffs would be at least postponed to salvage a trade deal with China. “It is calmness before storm. Markets have long believed the additional tariffs will be avoided," said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank. The final day of Britain's general election campaign saw top party leaders making a last-ditch sprint across the UK to woo the voters, as a definitive pre-poll survey gave Prime Minister Boris Johnson an edge but also kept the prospect of a hung Parliament on the table.