Pound Volatility Climbs as Tory Leadership Race Comes Into Focus

Photographer: Chris J. Ratcliffe/Bloomberg
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Traders are starting to bet on swings in the pound next month as the race to replace U.K. Prime Minister Theresa May kicks off.

The Conservative Party leadership contest has caught the attention of options traders as May’s successor is likely to define the course of Brexit. With May expected to agree a timetable for her own departure in June after a final attempt to get her Brexit bill through Parliament, buying protection against currency swings is getting more expensive.