FTSE 100 Live: What's Moving UK Markets, BOE, Pound (GBP/USD) Right Now - Bloomberg
Hedge funds and other leveraged investors are getting more positive on the pound again.
They added to their so-called net long positions for a third week, the longest stretch since August. That’s according to a measure of aggregate net positions based on data from the Commodity Futures Trading Commission as of Dec. 12.
Hedge funds, who have been positioned for a stronger currency every week since late May, almost gave up and turned bearish in late November. But with traders betting the Bank of England will be less aggressive than the US Federal Reserve next year in cutting interest-rate cuts, some now expect the pound will benefit. The team at Goldman Sachs recently revised its forecast upward for the currency, seeing strengthening to $1.30 in six months (from $1.20 previously.)
Investors overall are the most bullish the pound since mid-September, as this chart shows.