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Hedge Funds Cut Bearish Pound Positions Before BOE Rate Decision

  • Pound advances before U.K. inflation data due Tuesday
  • Back-to-back short position reduction is first since Brexit
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The pound rose for the first time in four days as hedge funds and other large speculators cut their bets that the currency will fall for a second week before the Bank of England’s latest policy decision.

That’s the first back-to-back reduction in so-called net short positions in sterling since Britain voted to leave the European Union in June. The U.K. currency gained versus all except one of its 16 major peers before a report Tuesday that economists forecast will show annual consumer-price inflation accelerated in August from a year ago at the fastest pace since November 2014.