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Few signs of British election nerves as sterling gains vs euro
Sterling managed to gain half a percent against a broadly weaker euro on Tuesday and steadied against the dollar two days before Britain votes in the most uncertain national election in recent history. Political jitters did not appear to affect the pound, though major bank Citi's "trade of the week" was a short sterling position against the dollar. On a trade-weighted basis, sterling was up 0.2 percent at 89.7. Nerves before Thursday's vote could only be clearly identified in the options market, where the cost of hedging against big short-term swings in sterling soared. The one-week sterling/dollar implied volatility ... (full story)