June 5 Reuters Sterling edged up versus the dollar and the euro on Wednesday ahead of key U.S. economic data, while market participants mull over the impact of a potential victory for the Labour Party in next month39;s general elections.

The UK data calendar is light this week, barring Thursday39;s release of the Bank of England39;s BoE Decision Maker Panel on inflation expectations.

ING analysts recently argued that they expect oneyear inflation expectations to have fallen and remind markets that they are being too conservative in pricing less than two BoE rate cuts this year.

ING expects the BoE to ease its policy three times in 2024.

Investors are currently pricing more than a 50 chance of 25 bps of BoE rate cuts by September while discounting 35 bps by yearend, which means one cut and a 40 chance of a second move in 2024.

The U.S. employment data throughout the week will dominate the macro calendar, after Wednesday39;s U.S. services data.

Sterling was up 0.1 at 1.2776. It hit 1.2817 the day before, its highest since March 14.

On May 22, Prime Minister Sunak announced that the next UK general election will occur on July 4.

Britain39;s main opposition party is set to win by a larger margin than in 1997 under former prime minister Tony Blair, opinion pollsters YouGov said on Monday.

Labour39;s focus will likely start with ambitious supplyside policies, from planning reform to boosting employment and education, said Sanjay Raja, senior economist at Deutsche…