One-month risk reversals on the British pound (GBP), a gauge of calls to puts, jumps to the highest since March 02 by the of Wednesday’s trading session, indicating investors are adding bullish bets to position for cable strength ahead of the key Bank of England (BOE) meeting.
Risk reversals jumped to +0.400 in favor of call or bullish bets according to the latest data provided by Reuters. The gauge peaked at +0.65 in favor of calls during February.
The GBP/USD pair hovers around the 1.3900 figure, marginally higher for the day but confined to familiar levels. The pair hit an intraday high of 1.3925 during European trading hours, confined to familiar levels amid the absence of UK data and as investors wait for the Bank of England. Meanwhile, tensions about fisheries rights between the UK and France continue, discouraging pound buyers.
