Pound Traders See Gains Before U.S. Vote as Brexit Still Elusive
- Short-term options bets turn neutral as charts offer support
- Trade talks and pandemic woes to dictate year-end performance
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The pound looks poised for gains ahead of U.S elections, yet whether it can maintain momentum after the vote is still questionable.
Option risk reversals show traders are no longer bearish the U.K. currency over a one-week horizon, opening the way for an advance before the Nov. 3 vote in America. Behind the shift in this gauge of positioning and sentiment lies the latest progress in Brexit negotiations, and a bias in the market to sell the dollar in the run-up to the election.