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Analysts at CIBC, point out that GBP implied volatility hast been higher higher than the Mexican Peso over the last weeks and also noted short positions have remained stretched.

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“The GBP has been labelled the “Great British Peso” by some commentators given that the high degree of implied volatility recently has resembled an emerging market currency. However, with recent votes appearing to diminish the odds of a no-deal Brexit, the “Pound” has made something of a comeback.”

“Given that net short positions are still very stretched and would be trimmed further if risks continue to diminish, sterling could continue to rise against both the euro and the US$.”