Sterling option volatility spikes on Brexit deal news

Trading reaches crescendo on Friday; insiders warn of further volatility

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The sterling market is braced for more volatility after banks were caught off guard on Friday when foreign exchange options trading surged as traders piled into upside bets on the UK currency.

With notional volumes of sterling-US dollar options hitting $23.5 billion, Friday made for a “crazy” day of trading, says one London trader at an interdealer broker. It was the largest single day of options trading in the pair since at least the start of 2018, according to data from the Depository Trust &

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