Yesterday’s trading session was an unpleasant surprise for volatility buyers. The volatility of GBPUSD declined 6%. The currency pair itself spent almost the entire day moving in the range between 2 option barriers (1.5388 and 1.5474)
Today’s news background is not expected to bring cardinal changes. The indicators are predictable and do not have enough weight to cause a volatility increase. These are today’s major reports: initial jobless claims (US) and ECB press conference. At this point the ECB and BoE’s interest rate decisions are secondary.
Now GBPUSD is being traded between the mentioned 2 option barriers (1.5388 and 1.547). As the volatility is still high it is recommended to abstain from buying strategies. Sales are more suitable till Friday.
Provided by the Department of Options,
