Post-Brexit turmoil prompts record level of sterling shorts

Boosted by hedge funds

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...