GBP/USD: put value continues to rise on Brexit uncertainty

One-month 25 delta risk reversals on Sterling (GBP1MRR), which provide a measure of how much of a premium there is for GBP puts vs calls, is currently seen at -2.825; the lowest level since Nov. 16.

The near 90-degree drop from the high of -1.70 seen on Jan. 14 represents a sharp rise in the value (or demand) for Sterling puts (bearish bets).

The continued uncertainty around Britain's Brexit plans is likely forcing investors to position for a sharp drop in Sterling.

As of writing, GBP/USD is trading at 1.2930.

GBP1MRR