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One-month risk reversals on the British pound (GBP), a gauge of calls to puts, drops to the highest since the week ending on March 19 during early Friday’s trading session, indicating investors are turning bearish ahead of the key US inflation data, namely Core Personal Consumption Expenditure (PCE) Price Index for April.

Read:  US PCE inflation preview: Gold remains key asset to watch

Risk reversals jumped to -0.063, in favor of put or bearish bets according to the latest weekly data provided by Reuters.

The negative reading indicates put options are drawing a higher premium (option price) than calls or bullish bets. In other words, the options market is most bearish in nearly two months ahead of the key US data.

That said, GBP/USD retreats to 1.4190, down 0.13% intraday, after rising the most in three weeks the previous day.

Read:  GBP/USD Price Analysis: Defends 1.4200 during another battle with key hurdle