One-month risk reversal on GBP/USD, a gauge of calls to puts, has dropped to -1.75, the lowest level since Sept. 25, extending the drop from the peak of -0.90 observed on Nov. 17, according to data source.
The negative risk reversal results from put options or bearish bets drawing stronger demand than calls (bullish bets).
As such, the latest drop in the risk reversal indicates investors are adding bets to position for weakness in the British Pound.
GBP/USD is currently trading near 1.3364.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.