Brexit optimism put a bid under the GBP in Asia. The sharp drop in the value of put options validates the upside move in the GBP/USD. The FT reported in Asia that UK’s Prime Minister Theresa May has sealed a Brexit deal on financial services. In response, the GBP/USD pair jumped 90 pips to a session high of 1.2856, confirming a temporary low is in place at 1.2696 (Oct. 30 low). The recovery rally looks credible as it is backed by a sharp drop in the implied volatility premium for the cheap out of the money GBP puts, risk reversals show. The one-month 25 delta risk reversals (GBP1MRR) rose to -1.1 today – the highest level since Sept. 20 – from yesterday’s print of -1.125. Further, risk reversals stood at -1.8 on Oct. 24. The recovery in the risk reversals indicates the implied volatility premium or the demand for the GBP puts has dropped sharply in the last seven days. 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 AUD/USD: Put value hits one-month low FX Street 4 years Brexit optimism put a bid under the GBP in Asia. The sharp drop in the value of put options validates the upside move in the GBP/USD. The FT reported in Asia that UK's Prime Minister Theresa May has sealed a Brexit deal on financial services. In response, the GBP/USD pair jumped 90 pips to a session high of 1.2856, confirming a temporary low is in place at 1.2696 (Oct. 30 low). The recovery rally looks credible as it is backed by a sharp drop in the implied volatility premium for the cheap out of the money GBP puts, risk reversals… 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.
