Traders Get New Gauge of `Brexit' Risk With Vote 3 Months Away
- Surveys could move price swings considerably: Mizuho's Jones
- Sterling is the worst performer this year among G-10 peers
A trader points to a graph on his computer screen.
Photographer: Christophe Archambault/AFP via Getty ImagesThis article is for subscribers only.
Next Wednesday marks exactly three months until Britain’s referendum on its European Union membership. That gives another opportunity for an insight into how concerned pound traders are about the outcome.
The benchmark three-month gauge of volatility in sterling versus the dollar will cover the June 23 vote for the first time next week, giving traders another instrument to protect themselves against price swings. With surveys still pointing to the ‘remain’ and ‘leave’ camps running neck and neck, a six-month measure is about 1 percentage point from a five-year high reached last month.