Sterling retreats from early gains on UK election day

Concerns of a hung parliament

Sterling reached a two-week high this morning but quickly pulled back this afternoon as investors nervously await the result of the UK General Election.

The pound was trading at $1.297 this morning but retreated from early gains to trade around $1.292 this afternoon, making it 0.3% lower on the day. The volatility reflects market concerns over whether there will be a Conservative victory, albeit with a smaller majority than had previously been expected, or a hung parliament. Equities were also jittery with the FTSE 100 is down 0.3% and the All-Share down 0.2%. Sterling falls as May's lead narrows further Jon Jonsson, senior portfolio manager of investment grade at Neuberger Berman, said: "It made sense to be long sterling until ...