The omicron variant of Covid has triggered a wave of bets against the pound amid fears that the Bank of England will move slowly to tackle soaring inflation fuelled by the energy crisis.
Wagers on a slide in sterling reached a net total of £3.6bn in the run-up to Christmas, the highest level since October 2019 when Parliament was wracked by a series of crunch votes on Brexit and £4.5bn was positioned against the currency.
The London FX markets trade some £2 trillion a day. Sure, not even a majority of that concerns sterling at all but still. £3.5 billion is penny ante pissery stuff.
That’s before we get to the truth that absolutely every position is bear – because there are two sides to every position so there must be a bull and bear each time.