Pound Traders Turn Cautious as Rally Stalls on Brexit Deal Risk
- DUP’s lack of support for Johnson plan risks scuppering deal
- Sharp turn in options sentiment follows five-month pound high
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The pound’s rally is stalling on the impasse over Brexit talks and options traders have started protecting themselves from the risk of the currency sliding.
Only a few days ago, traders were the most bullish on record over the pound’s short-term prospects. The tide has turned, however, after the U.K. currency hit a five-month high on Wednesday and as a Brexit deal has yet to be announced.