Sterling is 'a big sell'

Britain's mounting problems have made the pound the second most shorted currency this year.

The tanking yen has dominated the headlines in the forex market this year. But sterling is 2013's second-worst performing currency, and is now at a 15-month low against the euro and a seven-month trough against the dollar.

The trend looks far from over. Hedge funds, having made a killing shorting the yen, are now eyeing up sterling. US futures traders were net long sterling a month ago. Now the pound is the second most shorted currency after Japan's.

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