Pound Shaken Up by Positioning in Fear of Swift and Brutal Move
- Sterling fell as much as 1.2% Monday before paring losses
- Funds trim short positions, options traders bet on gains
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The pound swung as traders attempted to read the tea leaves on the likelihood of the U.K. securing a Brexit deal as soon as this week.
Sterling pared declines after falling 1.2%, as U.K. Prime Minister Boris Johnson pledged to “get Brexit done” despite skepticism from the European Union. Hedge funds and asset managers have been paring their bets on a weaker pound, according to the Commodity Futures Trading Commission.