'Brexit' Risk Widens Chasm Between Pound, Inflation Volatilities: Analysis

Sterling inflation option cap premiums may rise from trough if currency weakness persists

Weighing the 'Brexit' Risk

Growing tail risk of Brexit could resurrect GBP inflation volatilities as the cost of protecting against pound’s downside surges. Lure of relative value could push up inflation premiums from trough, Bloomberg strategist Tanvir Sandhu writes.

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