• GBP/USD hasn't escaped wider FX option implied volatility setbacks

• Calmer spot tone and risk recovery before long Easter weekend hols, weigh

• Benchmark 1-month now 9.25 from Fridays new recent high at 10.75

• However, that's still well above late March and longer term lows at 6.7

• Options expected to meet demand before prior lows amid tariff uncertainty

• GBP/USD risk reversals reached best levels for topside strikes since 2020

• Those premiums much slower to ease and highlight bearish USD sentiment

• FX Options wrap - Bets mount on more pain for damaged dollar
GBP/USD risk reversals


GBP/USD FXO implied volatility

(Richard Pace is a Reuters market analyst. The views expressed are his own)