Bets on Pound Rally Climb to Highest Since 2007 Ahead of BOE

Investor bets on pound gains are at the highest level for 17 years, leaving the currency at risk of a pullback if the Bank of England joins peers in signaling rate cuts this week.

Hedge funds remain bullish while asset managers are cutting back on their short positions, taking overall bets in favor of sterling to the most since July 2007, according to data from the Commodity Futures Trading Commission for the week to March 12. That follows a rally in the pound that has turned it into the year’s best performing Group-of-10 currency.