Brexit drama muddies water for FX options market
Traders focusing on new dates – and scenarios – after domestic UK criticism of proposed deal
Foreign exchange options traders are revising their Brexit strategies and positions after recent political ructions caught them unawares. Fierce domestic opposition to the proposed terms of the UK’s withdrawal from the European Union sparked a three-day, 30% surge in sterling-US dollar volatility last week – and is now forcing the market to consider a wider range of outcomes, dealers say.
The proposed agreement was published late on November 14, after being agreed by UK prime minister Theresa
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