Institutional Traders Deepen Bearish Bets Against Sterling

Crypto and financial markets are experiencing a shift in sentiment as large institutional traders increase their bets against the British Pound.

According to CFTC data, net non-commercial positions in sterling have weakened week on week, dipping to -49.6k contracts from -44.5k.

This represents a further 5.1k contracts of net short exposure compared with the prior week, indicating a deeper bearish stance on GBP positioning.

The shift aligns with recent UK economic indicators showing a cooling labor market and CPI inflation holding close to the 2.2% mark.

With the Bank of England expected to cut interest rates further towards the 4.0% level, the yield advantage that previously supported the pound is rapidly eroding.