FXpert

Sterling remained strong on Monday, buoyed by opinion polls that point to the ruling Conservative Party winning Britain's general election on Thursday, though the currency surrendered some gains when a later poll showed their lead narrowing a little.

The dollar was little-changed against a basket of currencies on Monday as investors awaited fresh developments in the 17-month-long U.S.-China trade war, while the pound crept higher on the latest polls ahead of this week's British election.

The dollar gained on Friday after five straight days of losses, lifted by data showing the U.S. economy created many more jobs than expected in November, backing the Federal Reserve's stance of keeping interest rates on hold after cutting them three times this year.

Sterling fell on Friday, consolidating after three days of gains that took the pound to 2-1/2-year high versus the euro and a seven-month high against the dollar on expectations that the Conservative Party will win next week's British election.

Sterling hit 2-1/2-year highs versus the euro on Thursday, on growing confidence that next week's election will give the Conservative Party the parliamentary majority it needs to deliver Brexit, ending near-term uncertainty.

The dollar dropped for a fifth straight session on Thursday, pressured by softer-than-expected U.S. economic data and this week's robust performance by the euro and the British pound.

Sterling surged above $1.31 and hit its highest level in about 2-1/2 years against the euro on Wednesday, lifted by growing expectations that Britain will avoid a hung parliament after next week's election and a broader pullback in the U.S. dollar.

The safe-haven yen and Swiss franc fell on Wednesday, as risk appetite improved, after more positive rhetoric on U.S.-China trade negotiations from U.S. President Donald Trump.

The U.S. dollar, which has dominated the currency market for the past couple of years, is likely to maintain its position of strength despite diminishing returns from the most overcrowded trade of the year, a Reuters poll of strategists found.