Traders’ bets against the pound show markets are testing Britain’s next economic direction
City traders have reportedly built short positions of about £7 billion against sterling as markets assess the prospect of an Andy Burnham premiership. The move reflects concern over Britain’s fiscal outlook, borrowing costs and uncertainty around future tax and spending plans. But the reaction is not a simple verdict on Burnham: the pound has also recovered when he has committed to existing fiscal rules, showing that markets are watching for credible detail rather than rejecting political change outright.