Sterling slipped today, consolidating after three days of gains that took the pound to two and a half year high against the euro and a seven-month high against the dollar.

The gains had come on expectations that the Conservative Party will win next week's British election. 

The pound is still headed for its best week since mid-October, having risen 1.5% against the dollar and almost 1% to the euro as various opinion polls indicate a comfortable majority for the ruling party. 

But today it slipped 0.2% to $1.3138, just off a $1.3166 high touched yesterday, while against the euro it traded at 84.58 pence, having traded as high as 84.31 pence this week. 

David Katimbo-Mugwanya, a fund manager at EdenTree Investment Management, said confidence has been growing that a decisive election result and the subsequent passing of a Brexit withdrawal deal in the UK parliament would boost the economy.

"I would expect some sort of bounce (in the UK economy). You have already seen some of that in the currency," he said.

Should the Conservative Party win a majority in next week's election, some analysts believe any further rise in the pound will be limited, however.

MUFG said in a research note sent to clients that the need for the UK and the EU in 2020 to begin negotiating their future relationship would introduce a "sustained period of uncertainty".

Evidence of a weakening economy in Britain would also weigh on the pound, the analysts said, pointing to a new jobs market survey that showed the slowest rate of rising vacancies since October 2009.