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GBP/USD risk reversals hit highest since June 2018

GBP/USD three-month risk reversals (GBP3MRR), a gauge of calls to puts, has jumped to -0.675 - the highest level since June 2018 - indicating the implied volatility claimed by the put options (bearish bets) on the British Pound has hit a 19-month low. 

Put simply, investors are expecting GBP/USD to move higher over the next three months. 

The currency pair is currently trading largely unchanged on the day at 1.3064. 

GBP3MRR

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