Pound Bears Choose Euro Over Dollar as UK Budget Risk Looms

Options traders are betting that tax-and-spend budget moves will send the pound lower against both the dollar and the euro.

The common currency is the best vehicle to concentrate UK-specific risks, as shown by the two-week rollover in options on Wednesday. The dollar side is more complicated, with the US government re-opening and fresh data risks making it hard to isolate the UK story ahead of the budget on Nov. 26.