Traders Expect a Volatile Pound Before Britain's Exit Talks With the EU
- Sterling at $1.10 or $1.60 not ‘far fetched:’ Mizuho’s Jones
- Investors stay bearish the U.K. currency as skepticism remains
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Options traders are bracing for bigger swings in the pound as the U.K.’s exit talks from the European Union approach the finishing line.
Sterling has gained this month amid speculation the two sides will announce a Brexit divorce settlement next week as leaders edge toward resolving the thorniest issues. But facing a period of intense negotiations and their eventual success or failure, currency traders are buying protection against big swings in either direction from its current level of around $1.32.