Sterling falls as Investors turn to Domestic Events

The British pound fell against both the US dollar and euro after weekly data showed a rise in the bearish pound as investors focused on domestic drivers, including Wednesday's Spring Declaration.

According to Scotiabank analysis, the weekly sentiment report of the Commodity Futures Trading Commission shows that net bearish bets on the pound rose by $1.3 billion, the biggest bearish net on sterling since the early weeks of 2022. 

Scotiabank said, “ A dovish hike by the BoE highlighted the limited tailwinds for sterling that will likely sustain a bearish GBP position over the coming months.”

Traders will have several domestic drivers to digest this week, including UK inflation data, a speech by Bank of England Governor Andrew Bailey, and Wednesday's Spring statement by Finance Minister Rishi Sunak.

The finance minister, Rishi Sunak also said that he would help where he can with the current cost of a living squeeze but warned that the Ukraine crisis and sanctions on Russia would add to the economy’s problems as well.

Meanwhile according to the data from property website Rightmove showed asking prices for British houses recorded their sharpest jump for the first time since 2004.