Pound Benefits as Options Traders Shrug Off Global Risksby
Any jitters over the U.K.’s impending exit from the European Union doesn’t seem to be showing up in pound options. One-year implied volatility in sterling against the dollar fell today to the lowest level since August 2015, reflecting a trend of receding expectations for price swings in other assets. This is good news for the pound, which has risen 4.9 percent this year and benefited from past bouts of low volatility. This commentary first appeared on Bloomberg’s Markets Live Blog. For more market insights, click MLIV <GO>.