Pound Options Show Pessimism With Bearish Bets at 7-Week High
- Three-month options near proposed start time of Brexit process
- Brexit transitional phase to ease leaving EU likely says May
Schmieding: Pound at Risk From Brexit Negotiations
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Pound traders are becoming increasingly bearish on the currency, with the cost of insurance against a decline versus the dollar at the highest since November.
Sterling slid against all of its Group-of-10 peers on Wednesday, and three-month risk-reversals, which expire close to the March deadline by which Prime Minister Theresa May intends to start the formal Brexit process, suggest concern more losses may be imminent. The U.K. currency, which rallied in November, fell to the lowest level in a month against the dollar on Tuesday, and is now down more than 17 percent since the nation voted to quit the European Union in June.