Hedge fund managers short sterling

Hedge fund managers have been increasing their short positions in sterling amid fears the currency is set to depreciate further as investors flock to the euro.

The FT reports hedge fund shorts against the pound are at a five month high, making it the second popular short trade after the yen, according to data from the US Commodity Futures Trading Commission. The pound has fallen around 4% against the dollar and 6% against the euro since the start of 2013 as investor sentiment sours. Last week the pound fell to a seven month low against the dollar, sliding below $1.56 for the first time since August 2012, after the BoE warned inflation could remain above its 2% target for a number of years. As Investment Week reported last month bond fund ...