and here we go again stop as if you feel
like you've heard this one before but
sterling is feeling the heat as momentum
for a fresh leg lower appears to be
building the currency was of course
slammed by the result of the UK's EU
referendum in June after some
underwhelming mini recoveries its
slumped again last week after the Bank
of England unleashed its latest package
of stimulus this week you guessed it
it's taken a new blow sinking back under
130 to the dollar normally traders and
investors balk at bets that are too
obvious but this doesn't seem to be the
case this time pushing this along the
Fed is expected to raise rates again as
soon as December maybe even sooner while
the Bank of England is not expected to
raise rates for some 70 months that
makes it just a no-brainer to sell the
pound many punters are already doing
just that data drawing on activity in
the futures market shows that bets
against sterling were already at record
levels in the week to last Tuesday but
currency hedge funds more broadly do not
appear to be committed their returns
have been under pressure for most of
this year and they're still under
pressure now suggesting that Psalm is
still sitting back sharpening their
claws and waiting for a new opportunity
to pounce analysts see no reason to pull
back from their assessments at the pads
in line to fall to the mid 120 s against
the dollar and possibly as low as 110
through next year there could be some
excessive post referendum pessimism at
play here but no influential analysts or
investors have presented a case for
buying since well June the 22nd this may
have caused proved to be part of the
solution by helping exports something
the BOE has alluded to but new trade
figures show that imports remain much
larger and in the month of June they
grew much more than exports the price
tag will keep growing on that unless the
trade mix alters fast