Volatility in the euro-sterling exchange rate is expected to pick up again in the coming weeks as the UK general election winds towards a conclusion.

The pound has been remarkably stable for the last month or so as traders appear to be pricing in a Conservative victory in the election and for the new government to deliver Brexit promptly.

However, there are risks to the outlook.

"The exchange rate should remain stable to year end. The polls are pointing to a Tory majority. Anything other than that would lead to some weakening," John Finn, Managing Director of Treasury Solutions, said.

"The next key event is January 31st when the UK is due to start leaving the EU. There's a small chance that, with a Tory majority, they could get a rush of the blood to the head and start arguing again."

In the absence of that, he said the main focal point was this time next year when the UK is due to formally leave the EU.

"They can request an extension. The real risk is that talks don't go well and that they crash out without a deal and we see sterling back at the mid 90s. That's not priced in at the moment," he said.

Mr Finn warned exporters that they need to be vigilant and take action now.

"They should have a plan. At least put yourself in a position in which you can execute these hedges and know the levels at which you want to do them.

It takes a few weeks to put these plans in place and  the danger is that you miss a move of 3 or 4 pence and you miss an opportunity," he said.

The pound was trading at close to 86 pence this morning reflecting some relative weakness that has crept in over recent days.

Sterling fell in value against the euro after Jeremy Corbyn was judged to have performed creditably in Tuesday night's debate with Boris Johnson.