7IM cautious on sterling and commodities

The rise in energy prices and fall of the US dollar, which have dominated the last two years, have undergone their strongest reversals in August since the start of 2007. However, it is too early to say whether these trends have decisively changed direction or merely experienced corrections, 7IM says. It remains concerned about the prospects for the UK economy and cautious on the outlook for sterling. After the scale of the pound’s fall this year, we acknowledge the risk of a bounce, it says. 7IM has put in some partial hedge positions, where appropriate, to minimise the effect of such a re...