LONDON (Reuters) -The cost of hedging against big near-term moves in the pound against the euro shot to its highest since April on Tuesday, reflecting trader nervousness ahead of finance minister
Sterling Options Volatility Nears Highs Before UK Budget
LONDON (Reuters) -The cost of hedging against big near-term moves in the pound against the euro shot to its highest since April on Tuesday, reflecting trader nervousness ahead of finance minister Rachel Reeves' budget in a day's time.
Overnight implied options volatility, a measure of demand to own derivatives to protect against turbulent price action, shot to as much as 12.2% for euro/sterling. That was the most since April, when U.S. President Donald Trump's initial "Liberation Day" tariff announcement stirred up extreme market turbulence and the measure hit 15%.
It was last at 10.82%, according to LSEG data.
(Reporting by Amanda Cooper; Editing by Andrew Cawthorne)
