Sterling is trading on a mildly firmer footing. However, the GBP/USD pair is unlikely to trade above the 1.15 level, analysts at ING report.

Large swings cannot be ruled out

“Sterling price action seems to assume the advent of a Sunak/Hunt ticket as PM/Chancellor and a focus on trying to restore some of the UK's lost fiscal credibility.”

“After the failed experiment with Trussonomics, the challenge facing the new team will be harder than the one that existed earlier this summer and probably a reason why international investors will not want to chase GBP/USD above the 1.15 level. FX volatility does remain exceptionally elevated, however, and large swings cannot be ruled out.”