Post-Brexit turmoil prompts record level of sterling shorts

Boosted by hedge funds

Daniel Flynn
clock • 1 min read

Short investors such as hedge funds have increased bets against the sterling to record levels, despite the pound's international value beginning to stabilise following a post-Brexit rout.

According to The Times, speculators have taken out short positions on the pound worth £5.9bn, with City analysts now expecting sterling to finish the year at a new 31-year low of $1.27 against the dollar. The news comes despite the value of the pound steadying in recent weeks after falling in the wake of referendum, hitting a three-week high of $1.328 against the greenback on Friday. Hedge funds see largest monthly outflows since 2009 The positions also precede a survey due to be released later this week by data gatherer Markit, which is expected to show a rebound in business activ...

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