GBP: Could be a good time to take protection against swings - CIBC

Matías Salord FXStreet

Andrew Grantham, an analyst at CIBC, points out that GBP/USD implied volatility rose over a 1-month horizon, but not over the 3 or 12 months,

Key Quotes:

“News that British parliament voted to avoid a hard Brexit and extend article 50 has been positive for sterling, but what’s interesting is that measures of implied volatility more than one month ahead haven’t risen. That’s doubly strange now given that by potentially just kicking the can further down the road, we could be in a similar situation again later in the year.”

“As such, now could be a good time to take protection against swings in sterling later in the year.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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