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Sep 20 - 05:00 AM
GBP/USD - Short Squeeze Fuels Option Demand - EU Summit Red Flag
First appeared on eFXplus on Sep 20 - 02:40 AM
  • EU Junker softer stance on Brexit Backstop helps GBP nL5N26A68X

  • Market short GBP, being squeezed now with this news seen as positive

  • However, UK yet to produce concrete proposals, clock ticking toward Oct. 31

  • EU summit Oct 17-18 is when UK PM Johnson hopes to strike Brexit deal

  • 1-month expiry GBP options captured summit yesterday and spiked

  • Continued demand for option vols today, 1-3 month see biggest gains

  • Markets don't like uncertainty - options love volatility - good hedge

gbpusd VOLS: Click here

Refinitiv IFR Research/Market Commentary


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