The sterling could bounce up to $1.55 - its highest levels this year - if the Conservative Party becomes the largest party in the U.K. parliament, says Robert Rennie, global head of FX Strategy at Westpac.
The dollar recovered against the euro after German bund yields retreated from their highs for the year.
The euro hit a ten-week peak, tracking European bond yields higher and benefiting from a sell-off in the dollar after weak U.S. jobs data
Elias Haddad, senior currency strategist at Commonwealth Bank, expects the British pound to see continued volatility in the short term due to the U.K. general elections.
The dollar fell from three-week highs against the yen and one-week peaks versus the euro.
The dollar edged higher in thin trading after a two-week drop tied to data suggesting the U.S. economy might be stabilizing.
Michael Sneed, FX strategist at BNP Paribas, says uncertainty surrounding the U.K. elections and recent positive economic data are making investors cautious about short sterling trades.
The dollar touched a two-week high against the yen on Friday and rose from a two-month low versus a basket of major currencies.
The greenback reversed earlier losses to trade higher against a basket of currencies on Thursday.
The yen pushed higher on Thursday after the BOJ kept policy unchanged and held off from expanding its monetary stimulus.
The dollar dropped to an eight-week low after a weak U.S. consumer confidence report.
Sterling has boomed since mid-April and some analysts say the rally could run way beyond next month’s national election.
George Buckley, chief U.K. economist at Deutsche Bank, outlines his expectations for the U.K.'s first-quarter GDP reading and explains what that means for the Bank of England's monetary policy.
The euro scaled a three-weak peak against the dollar on optimism about Greece's prospects after the government reshuffled its bailout team.
Data showing a seventh straight monthly decline in U.S. business spending plans knocked the dollar lower on Friday.
The dollar fell against most other major currencies on Thursday, while the euro rose on waning fears of a Greek default.
Peter Hensman, global strategist at Newton, says there's evidence that sterling is pricing in all the U.K. election risks.
The dollar edged upward after a jump in U.S. home sales data lifted expectations Federal Reserve policymakers may soon hike interest rates.
The euro inched up against the dollar, pivoting from early losses following an ECB proposal.
The dollar rose broadly, with the euro sliding more than half a percent against the U.S currency, on growing concern that Greece may default on debts.