Bullish bets on the pound hit a new high since 2007, and there is a risk of a correction if the Bank of England hints at a rate cut

Investors' bullish bets on the pound are at their highest level in 17 years, and if the Bank of England also hints at interest rate cuts this week, like other central banks, then the pound will face the risk of a correction. According to data from the U.S. Commodity Futures Trading Commission (CFTC) for the week ending March 12, hedge funds remain bullish, while asset managers are also trimming their short positions, making overall bets on the bullish pound the highest since July 2007. Earlier, the pound has been strong and has become the best performing G-10 currency this year.

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