Sterling Sentiment Sours: Invesco’s FXB Sees Heavy Year-End Outflows as Pound Signals ‘Strong Buy’
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The Invesco CurrencyShares British Pound Sterling Trust’s FXB closed out 2025 with a sharp reversal in investor appetite, registering outflows of $6.48 million on December 31. The redemption, equivalent to roughly 8.35% of its $77.67 million in assets under management, marks a notable vote of caution from ETF holders even as the underlying currency shows signs of technical strength.
The related asset, FX:GBP-USD, is currently trading at 1.34759, essentially flat over the past three months with a 0% price change. Despite the lack of direction in the quarter, near-term momentum indicators are skewing bullish, with the one-day technical signal flashing a Strong Buy.
The divergence between FXB’s sizable year-end redemptions and the pound’s constructive technical backdrop underscores a broader theme in currency markets: investors are trimming exposure after a period of rangebound trading, possibly locking in carry or reallocating risk ahead of 2026 macro catalysts. While the fund’s outflows hint at fading enthusiasm for sterling exposure in ETF form, the spot market’s technicals suggest traders are not yet abandoning the currency itself.
For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.