Sterling Options Signal More Turmoil as May Speech, Ruling Loom
- Pound slides toward 31-year low after ‘hard Brexit’ report
- Supreme court ruling could trigger ‘violent’ rally, BTMU says
StanChart's Maratheftis: Expect Pound to Fall Further
A measure of anticipated swings for the pound climbed to the highest in three months before U.K. Prime Minister Theresa May’s speech on Brexit plans Tuesday and a court ruling this month on whether the British leader or Parliament carries the power to invoke the exit.
The pound slid below $1.20 for the first time since October’s flash crash after the Sunday Times reported May will prepare to withdraw from tariff-free trade with the European Union in return for freedom to curb immigration and strike commercial deals with other countries. While hedge funds started to boost bets against sterling from the end of last year, Bank of Tokyo-Mitsubishi UFJ Ltd. said the Supreme Court ruling may spur investors to unwind these short positions.