GBP/USD in a five-week range - BBH

Sterling remains within a five-week trading range of roughly $1.30 and $1.3320.  

Key Quotes:

"Speculative positioning in the futures market is roughly balanced between the bulls and bears, leaving a net position of long 1.2k contracts.  

The US two-year premium over the UK has to rinse from the year's low of 90 bp in mid-September to nearly 120 bp here in November.  The high for the year was set in March a little above 130 bp.  

The three-month (25 delta) risk-reversals (skew between calls and puts) show a premium for sterling puts, but that premium had been falling since early October, until today."

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