Currency Options Show Strongest Sentiment for GBP in 4 Years
Great Britain pound traders’ optimism, suggested by the currency options market, indicate that a strong bullish sentiment against the euro is currently active on the Forex market.
For a period of more than 3 years, the euro remained in advantage against the pound in the currency options market. This tendency has been reversed, as traders are now paying 0.25 percentage-point for one-week call options on the pound if compared to puts. Call options are those where traders have the right to buy an asset, while put options oppositely, give the right to sell assets. The turning point in the EUR/GBP market occurred on April 3, and, since April 6, the market favored the pound in every day but one.
A growing sentiment that the euro will slide against major currencies, specially the pound, can be increasingly felt, according to London analysts. Forecasts expect the pound to lose value until the month of May, and following a possible end in the global stocks rally, the pound will strengthen against the ECB currency.
The EUR/GBP was traded at 0.8839 in today’s session, with a depreciation movement for the euro. Yesterday, the pair was traded at 0.8915. The pound also rallied against the Swiss franc, being the GBP/CHF traded at 1.7131 from 1.6990.
April 15th, 2009 at 4:39 pm
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