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GBP/USD danger reversals hit 3-month low, signaling extra ache for Sterling

Threat reversals on Sterling, a gauge of name choices to place choices on the British foreign money, fell to their lowest degree since Dec. 12 in Asia, indicating buyers are including bets to place for the sell-off in GBP/USD amid Brexit uncertainty. 

GBP/USD one-month danger reversals (GBP1MRR) are at the moment buying and selling at -1.7 in favor of put choices (bearish bets) – a degree final seen in mid-December. 

Notably, the decline from the highs close to -1.00 seen three weeks in the past signifies rising demand for put choices.