Pound Shows How Brexit Concerns Are Starting to Look Overdone
- Implied three-month volatility tumbles by most since 2008
- Speculators' bets on sterling weakness are highest in 3 years
How Vulnerable is Sterling to Brexit Volatility?
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It’s as if a weight is lifting from the shoulders of pound traders.
A measure of risks to sterling fell Tuesday by the most since 2008, surpassing the drop in the aftermath of last year’s general election, when the political turmoil of a hung parliament was narrowly avoided. And though the June 23 vote on Britain’s membership of the European Union has made the pound the developed world’s worst-performing currency in 2016, during the past week it’s been the biggest gainer.