Currency Traders Are Betting the Bank of England Is About to Make a Mistake
- Wagers on sterling’s drop grew at fastest pace since 2019
- RBC sees pound down at $1.30 by year-end on incomes squeeze
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Bets against the pound are intensifying amid speculation that any Bank of England efforts to curb inflation would darken the outlook for growth and consumer sentiment.
Speculators ramped up wagers on sterling’s decline at the fastest rate in more than two years, Commodity Futures Trading Commission data show, further breaking the link between anticipated rate increases and currency gains. Meanwhile, strategists at Canadian Imperial Bank of Commerce, RBC Europe Ltd. and Societe Generale SA are bracing for the pound to slump to levels last seen in late 2020.