Yesterday’s volatility level gladdened the buyers of option strategies. Despite the fact that it was a day-off in the US, several economic reports from the UK and the eurozone managed to cause some volatility spikes. At the same time the British Pound lost over 100 points against the US Dollar.
At the moment GBPUSD is moving in a range between 2 option levels - 1.6074 and 1.6232.
Today’s news background is poor in terms of major news releases. ISM Non-Manufacturing PMI (USA) is going to be the only significant report for today.
Taking into account the overheated level of expected volatility, which hasn’t declined since early August, the traders of the Department of Options, , do not recommend buying the volatility of GBPUSD as today’s data will hardly manage to cause any volatility increase.
