Branch2 Intelligence
City traders in £7bn bet against the pound in Andy Burnham's Britain
Key takeaway
Speculators have built a £7bn short position against the pound, betting on a sharp decline if Andy Burnham becomes PM.
- Step 11st-order: Speculators build £7bn short GBP position on Burnham PM risk, driving GBP/USD lower.
- Step 22nd-order: Weaker GBP raises import costs for UK SMEs, squeezing margins on imported goods and raw materials.
- Step 33rd-order: BoE may raise rates to defend GBP, increasing SME borrowing costs and reducing investment.
Source: This is Money
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