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Sterling slips after three-day rally, set for best week since mid-October

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Sterling slips after three-day rally, set for best week since mid-October
FILE PHOTO: UK pound coins plunge into water coloured with the European Union flag colours in this illustration picture, October 26, 2017. REUTERS/Dado Ruvic   -   Copyright  DADO RUVIC(Reuters)
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(Reuters) – Sterling slipped on Friday, consolidating after three days of robust gains that took the British currency to 2-1/2-year high versus the euro and a seven-month high to the dollar on signs that next week’s election will yield a Conservative Party win.

The pound is still headed for its best week since mid-October, having risen 1.5% against the dollar and almost 1% to the euro as various opinion polls indicate a comfortable majority for the ruling party.

But on Friday it slipped 0.2% to $1.3138, just off a $1.3166 high touched Thursday, while against the euro it traded at 84.58 pence, having traded as high as 84.31 pence this week.

“It’s a small move and no fundamental change (in terms of what opinion polls show),” Nordea analyst Morten Lund said. “From a risk-reward perspective most people are too optimistic but if you look at option markets you can see some people positioning for sterling weakness.”

Leaders of the two main parties will go head-to-head in a TV debate later on Friday.

(Reporting by Sujata Rao; Editing by Dhara Ranasinghe)

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