Bullish bets on the pound hit new high since 2007, risking correction if Bank of England hints at interest rate cut

Investors' bullish bets on the pound are at their highest level in 17 years, and the pound faces the risk of a pullback if the Bank of England joins other central banks in signaling a rate cut this week. Hedge funds remained bullish and asset managers were cutting short positions, taking overall bullish bets on the pound to the highest level since July 2007, according to CFTC data for the week to March 12. highest level. The British pound had a strong trend earlier and has become the best-performing G-10 currency this year. Market players are betting that the Bank of England will wait longer than the Federal Reserve or the European Central Bank to cut interest rates as British inflation remains sticky. But banks such as Goldman Sachs have warned that if this week's inflation data slows more than expected, the Bank of England may act sooner, putting the pound at risk of investors liquidating their long positions.