The pound slipped to the lowest level against the euro in almost nine months amid growing concern that the U.K. could end up leaving the European Union with no agreement for future economic ties.
Sterling dropped for the third day versus Europe’s common currency and weakened against most of its Group-of-10 peers. The U.K.'s Trade Secretary Liam Fox said Monday that the European Union is stubborn, and the chances of a no-deal stand at 60 percent. At the same time, trade tensions supported the greenback, which also contributed to the 11-month low for GBP/USD.
Heightened concern that the U.K. won’t agree exit terms with the European Union has helped increase demand for pound put options over that for calls.
Chart: Used with permission of Bloomberg Finance L.P.
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