GBP/USD risk reversals hit highest since June 2018

Omkar Godbole FXStreet Contributor

GBP/USD three-month risk reversals (GBP3MRR), a gauge of calls to puts, has jumped to -0.675 - the highest level since June 2018 - indicating the implied volatility claimed by the put options (bearish bets) on the British Pound has hit a 19-month low.

Put simply, investors are expecting GBP/USD to move higher over the next three months.

The currency pair is currently trading largely unchanged on the day at 1.3064.

GBP3MRR

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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