Hedge Funds Bet Against Pound as Starmer Crisis Deepens

Hedge funds are betting on more pound weakness as Keir Starmer’s position as UK Prime Minister looks increasingly shaky.

Sterling fell as much as 0.7% to 0.8742 per euro on Monday, the weakest since Jan. 21, as the UK political crisis deepened with the departure of key aides and Starmer faced calls to resign. Pressure on the pound mounted last week on concerns around the prime minister’s grasp on power and as the Bank of England came within one vote of cutting interest rates.