Hedge Funds Make Record Bearish Pound Bets on Brexit Pessimism
ByHedge funds have made their biggest bearish bet on the pound before U.K. data due this week that will show the early effects of the nation’s decision to leave the European Union.
Sterling reached a one-month low Monday ahead of reports on inflation, retail sales and unemployment benefit claims for July, which will provide more detail on how the economy is faring after the June 23 referendum. The pound had its worst day on record when the vote for Brexit became clear, while losses deepened this month following the Bank of England’s decision to cut interest rates and boost its stimulus plan.
“The U.K.’s deteriorating economic outlook is reinforcing expectations of more BOE policy easing, which will continue to weigh on the pound,” Elias Haddad, a senior foreign-exchange strategist at Commonwealth Bank of Australia in Sydney, wrote in a client note. “Given the deterioration in business and consumer sentiment, U.K. retail sales risk underwhelming.”…
Hedge Funds Make Record Bearish Pound Bets on Brexit Pessimism
