The British pound reversed sharply ahead of the FOMC rate decision. At the beginning of European trading, the British pound was doing well and appeared to be on its way to closing higher for the fourth straight trading session. The UK trade deficit narrowed much more than the market expected as exports grew by 1.8 percent and imports eased 1.9 percent. With industrial production firm and the export component of PMI increasing, stronger trader numbers were not a tough call. Yet it is still surprising that given the high level of the British pound in the month of October, exports actually increased. This is partly due to the continued demand from the Eurozone. Over the past year, the pound has actually weakened 7 percent against the Euro. Tomorrow we have UK employment numbers which could trigger more losses in the GBPUSD. Employment is expected to be firm with jobless claims falling, but the drop in the employment components of service, construction and manufacturing PMI signal weakness.