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One-month 25 delta risk reversals, a gauge of puts to calls on the British Pound, has hit the highest level in over 12 months, indicating the investors are positioning for a rally in Sterling.

The gauge is currently trading at -0.375 – the highest since  April 19, 2018 –  compared to -3.25 seen on March 21.

The data indicate the implied volatility premium or demand for GBP puts (bearish bets) has dropped sharply in the last six weeks or so and is currently at its lowest level in nearly 13 months.