Updated on
Summary
Sterling slipped against the dollar on Tuesday as markets braced for a UK general election that may result in no one party securing a parliamentary majority, keeping investors unclear about the next government. Weaker-than-expected readings of UK lending briefly prodded the pound to the day's low against the dollar, but overall moves were limited as market participants were wary of taking on big positions before the vote on Thursday. The latest polls show none of the three main parties have enough support to form a majority government. Analysts say the market has priced in the possibility of a hung parliament, but sterling may struggle as it remains unclear which parties may form a coalition government, and whether that government will be able to tackle the UK's towering budget deficits.
