Pound Holds 5-Day Drop as Traders Become Most Bearish Since July
- BOE's Weale says need for tigher policy is less immediate
- U.K. referendum on EU membership could happen as early as June
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The pound held five days of declines against the dollar as bets on a further drop in the options market were close to their highest level since July.
Traders are taking an increasingly adverse view on the pound’s outlook versus the dollar as forwards contracts failed to signal the Bank of England would speed its decision to increase interest rates after the Federal Reserve raised this month in the U.S. Meanwhile, the referendum on Britain’s European Union membership may take place as early as June after Prime Minister David Cameron was optimistic about the progress of talks. The vote could damp oversees investment into the U.K., strategists said.