UPDATE 1-Sterling range-bound until election; two-week volatility jumps

Elizabeth Howcroft

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv (Updates prices)

LONDON, Nov 29 (Reuters) - The pound hovered around $1.29 on Friday, showing little reaction to political headlines, with analysts expecting little movement in the run-up to the UK general election on Dec. 12.

Implied volatility gauges for both cable and euro-sterling maturing on Dec. 13 - the day the Dec. 12 election results will be known - were at their highest in five weeks as investors hedged their bets for election uncertainty.

Versus the dollar, the pound was last down 0.1% at $1.2903 and it was flat against the euro at 85.245 pence .

It mostly held on to gains from when a major poll by YouGov released on Wednesday predicted that Prime Minister Boris Johnson's governing Conservative Party would win the election with its biggest majority in parliament since 1987.

"I think this week's big news was that YouGov opinion poll a couple of days ago - the market's waiting for the next headline," said Jane Foley, senior FX strategist at Rabobank.

Foley said that if this is the case then there will be little news from the Conservative campaign other than reiteration of their pledge to get Brexit done, and news about spending, which would leave sterling in a "holding position" for the next two weeks.

Sterling is heading for its quietest month since August, down around 0.3% so far in November - a small monthly move compared to October, where it rallied 5.2%.

Michael Hewson, chief market strategist at CMC Markets, said that he expects the pound to trade in the $1.27-$1.30 range until the election result is announced.

A Conservative majority could see the pound head towards $1.40, he said, as markets are not fully pricing in the Conservative lead shown by the polls.

Commerzbank FX strategist Thu Lan Nguyen also said that she would expect a rally in the pound if the Conservatives won a majority, because "there is still some skepticism about the polls".

Johnson said that it would be best if U.S. President Donald Trump did not get involved in the election when he visits London for a NATO summit next week.

CMC's Hewson said that the Conservative's lead in the polls was fragile because of the risk of Trump "sticking his foot in his gob" during his visit.

Analysts said that comments from Johnson in a wide-ranging interview on Friday morning - including that he would guarantee the UK's departure from the EU on Jan. 31 and would not extend the transition period - did little to move the pound.

(Reporting by Elizabeth Howcroft; Editing by Andrew Heavens, William Maclean)