More bets against the Pound than when Soros Gave Bank of England a Spanking
As your average Brit keeps their head nice and warm just below beach level, the smart guys are laughing all the way to the Bank…
…of England.
There is big money wagered on a sterling collapse. The wisdom of crowds springs to mind but who’s wiser, a crowd of Brits in denial or a crowd of futures traders?
Bloomberg: Futures traders are more bearish than ever on sterling amid concern that the currency’s worst annual start in 13 years will continue as the U.K.’s budget deficit approaches the Greek shortfall that roiled the euro.
Wagers on the pound weakening against the dollar outnumber futures that profit on a rise by eight times more than when George Soros made $1 billion betting against the currency in 1992, the year Prime Minister John Major’s Conservative government was forced to withdraw from the European Exchange Rate Mechanism. Sterling fell 19 percent that year.
Bets please.
And if you are still holding out for an export led recovery on the back of a weak pound despite last week’s bad news (official figures showed that UK exports suffered their biggest fall for more than three years in January)…
“I’ve been waiting 40 years for an export-led U.K. recovery, and I haven’t seen one yet,” said Robin Marshall, director of fixed income in London at Smith & Williamson Investment Management.
