By Richard Pace — Jun 10 - 04:46 AM
• Buyers of GBP/USD downside strikes noted in early London Tuesday
• 1-week expiry 1.3400 paid 7.6 implied volatility, 2-week 1.3350 at 7.7
• Benchmark 1-month expiry implied volatility paid 7.4 from 7.25 Monday
• Demand comes after poor UK payroll data and subsequent GBP/USD drop
• However, current expectations for future USD weakness should limit setbacks
• Related comment - Options signal calm — but FX threats are building
1-week and 1-month expiry GBP/USD FXO implied volatility
(Richard Pace is a Reuters market analyst. The views expressed are his own)
Source:
London Stock Exchange Group | Thomson Reuters
