The Tell: Pound shorts rose to record highs ahead of Friday’s flash crash

Hedge funds and other currency speculators pushed bets against the pound to their highest levels on record in the week ended Tuesday, according to data from the Commodity Futures Trading Commission.

Read: Biggest shift in British pound options since Brexit helped fuel currency’s tumble

The number of futures contracts representing bets that the pound would weaken outnumbered bets that it would strengthen by about 98,000, up by about 10,000 contracts from the previous week. Each contract is worth £62,500 ($77,500).

On Friday, the pound GBPUSD, -1.4269% abruptly shed 6% of its value against the dollar in a matter of minutes, sliding to a 31-year low of $1.1841 before shooting back above $1.24.

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