An alert just went off in my calendar. “Start looking to short the pound”, it says. Why would one short strength? Sterling has been very strong over the past few months.
You wouldn’t know it to listen to many financial commentators, who so often seem consumed with national self-loathing, but against a basket of major foreign currencies, the pound is actually flirting with six-year highs. It has a bit further to go against the euro and the US dollar; we tend to think of the pound-dollar rate, aka cable, as the defining measure.
Charlie Morris of asset manager ByteTree argues that the
