Fri. Jan 22nd, 2021

Pound hits 31-month high as Conservatives hold election lead – business live

Rolling coverage of the latest economic and financial news, as the Conservative party extends its lead over Labour to 14 points

1.23pm GMT

The recent rally in the pound is a blow to any hedge funds who have bet against the currency.

Speculators have reduced their net short positions on the pound vs the US dollar to $2.44bn in the last week, Reuters is reporting. That’s down from a peak of $7.81bn earlier this year.

“Sterling can get to $1.34/$1.35 if there is a Conservative victory, then its appreciation will be capped by what the Conservatives have pledged in terms of the spending offered and renewed Breixt uncertainty.

1.05pm GMT

The FT has spotted that the cost of insuring against a tumble in the value of the pound has risen.

That suggests some investors are nervous about the result of this week’s election, as a hung parliament would probably knock sterling lower.

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