Sterling Sentiment Cools as Invesco’s Pound ETF Sees Year-End Exodus
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The Invesco CurrencyShares British Pound Sterling Trust, ticker FXB, closed out 2025 with a sharp outflow, as investors pulled $6.48 million from the fund on December 31. The redemption, equivalent to roughly 8.34% of its $77.72 million in assets under management, marks a notable year-end repositioning in exposure to the British pound.
Such a sizable single-day withdrawal suggests investors may be locking in modest gains or rotating out of pound exposure amid uncertainty over UK growth, interest-rate trajectories, and the broader macro backdrop heading into 2026. With nearly one-tenth of AUM exiting in a single session, the move underscores how quickly sentiment can shift in currency-linked products when policy or political risks loom.
The related asset, FX:GBP-USD, is currently trading at 1.34111, up about 0.98% over the past three months. Despite this modest appreciation, the pair’s short-term tone appears cautious, with a 1-day technical reading of Hold, reflecting a market that is neither decisively bullish nor bearish on sterling against the dollar.
The combination of a muted three-month advance in GBP/USD and substantial outflows from FXB hints that investors may be questioning how much upside remains for the pound without clearer signals on UK monetary policy and economic resilience. For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.