Reported 8 months ago
Hedge funds are showing increased optimism towards the UK, with a surge in bets on a stronger pound as the upcoming election is expected to solidify the country's move towards more stable, centrist policies. Leveraged investors and hedge funds are holding the largest net-long position in the pound since late September, with the UK currency rallying to its highest level against the euro in nearly two years. Market sentiment favors the UK over France due to relative fiscal responsibility, prompting Bank of America to recommend shorting the euro against the pound as a hedge before the election. However, some analysts caution that the pound's current positivity could make it vulnerable to a slide against the euro in the short term.
Source: YAHOO