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26 Apr 2016
GBP/USD made it to fresh 2-month highs - Scotiabank
GBP is outperforming, reaching a fresh high at levels last seen in early February.
Key Quotes:
"Sentiment favors GBP upside as we note the ongoing moderation in concern surrounding the risk of a ‘leave’ vote for the UK referendum.
Bloomberg’s poll tracker suggests steady decline in uncertainty as those in the ‘don’t know’ camp shift their bias to ‘remain’.
The decline in implied GBP volatility at the 3M horizon has been impressive, and risk reversals have adjusted accordingly with a considerable moderation in the premium for protection against downside risk in GBP."
Key Quotes:
"Sentiment favors GBP upside as we note the ongoing moderation in concern surrounding the risk of a ‘leave’ vote for the UK referendum.
Bloomberg’s poll tracker suggests steady decline in uncertainty as those in the ‘don’t know’ camp shift their bias to ‘remain’.
The decline in implied GBP volatility at the 3M horizon has been impressive, and risk reversals have adjusted accordingly with a considerable moderation in the premium for protection against downside risk in GBP."