FTSE 100 and the pound expected to rebound if Theresa May wins large majority as traders translate soft Brexit with big Conservative win
Markets were edgy as polling got underway for the election on Thursday, with traders believing a Conservative victory was the most likely outcome but growing increasingly cautious about the size of the majority.
The pound fell 0.11% to $1.2945 against the dollar as the London stock market closed, after earlier climbing to a two-week high of $1.2977. Against the euro it added 0.23% to €1.1535. However, an index that measures sterling volatility surged to its highest level in a year in expectation of strong swings in the currency as results begin to come in.