The British pound strengthened against most major currencies in the Asian session on Monday, as some hedge funds bet on a risk-free election and government, as the general election draws closer.

Several hedge funds bet that the aftermath of the May 7 election result would be risk-free for the Sterling, even if it delivers a hung parliament with an unstable coalition government.

Polls also show a 'hung parliament' in which no single party commands a majority is likely.

Traders also focus on next week's election campaigns.

Sentiment also improved, as the minutes of Bank of England's latest recent monetary policy meeting hinted at a sooner-than-expected rate hike.

Meanwhile, Asian stock markets are mostly in positive territory, as higher commodity prices lifted resource stocks. Investors also focused on corporate earnings.

Last Friday, the Pound showed mixed trading against its major rivals. While the Pound rose against the U.S. dollar and the Yen, it held steady against the Swiss franc. Against the euro, the Pound fell.

In the Asian trading today, the pound rose to nearly a 2-month high of 1.5189 against the U.S. dollar, from an early low of 1.5141. If the pound extends its uptrend, it is likely to find resistance around the 1.54 area.

Against the Swiss franc, the pound advanced to a 4-day high of 1.4515 from Friday's closing value of 1.4478. The next possible upside target for the pound is seen at 1.51 level.

The pound edged up to 180.73 against the yen, from last week's closing value of 180.59. At Friday's close, the pound was trading at 184.25 against the yen. The pound is likely to find resistance around 184.00 region.

Looking ahead, Markit's flash U.S. PMI for March is slated for release in the New York session.

Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more Sterling vs CHF Charts.
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more Sterling vs CHF Charts.