GBP/USD risk reversals hold at a three-week high on Friday. BOE’s dovish hike hasn’t revived interest in the GBP put options (bearish bets). The Bank of England’s dovish rate hike and the resulting drop in the GBP/USD to 1.3006 has not boosted demand for the GBP puts, risk reversals indicate. Currently, the GBP/USD one-month 25 delta risk reversals (GBP1MRR) stand at -0.925 – largely unchanged on the day and highest since July 12 – having clocked a low of -1.075 on July 19. The rise from -1.075 to -0.925 indicates the demand (or implied volatility premium) for the GBP puts had dropped in the run-up to the BOE rate decision. Further, no change in the risk reversals post-BOE’s dovish hike indicates the investors do not expect a deeper drop in the GBP/USD. This puts a question mark on the sustainability of the drop in the GBP/USD to 1.30. That said, the demand for the GBP puts may rise sharply, leading to sharp decline in the risk reversals if the GBP/USD pair finds acceptance below the 1.30 mark. GBP1MRR FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Trump administration may view Yuan drop as intentional devaluation – Goldman Sachs FX Street 5 years GBP/USD risk reversals hold at a three-week high on Friday. BOE's dovish hike hasn't revived interest in the GBP put options (bearish bets). The Bank of England's dovish rate hike and the resulting drop in the GBP/USD to 1.3006 has not boosted demand for the GBP puts, risk reversals indicate. Currently, the GBP/USD one-month 25 delta risk reversals (GBP1MRR) stand at -0.925 - largely unchanged on the day and highest since July 12 - having clocked a low of -1.075 on July 19. The rise from -1.075 to -0.925 indicates the demand (or implied volatility premium) for the GBP puts… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
