GBP/USD: Put premium hits two-week lows

Omkar Godbole FXStreet Contributor

The GBP/USD one-month 25 delta risk reversals (GBP1MRR) are currently trading at -2.175 in favor of puts - a level last seen on Nov. 14 - having printed a 2.5-year low of -2.84 on Nov. 15.

The decline in the implied volatility premium (or demand) for GBP put options, as represented by the rise in risk reversals, could be a sign that investors are not expecting GBP/USD to challenge recent low of 1.2696.

As of writing, GBP/USD is trading at 1.2750.

GBP1MRR

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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