Rolling coverage of the latest economic and financial news
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- Aramco hits $2trn market cap
The pound hit a new eight-month high against the dollar this morning, before slipping back.
It touched $1.3228 for the first time since late March. That’s 10 cents higher than in mid-October, just before Boris Johnson managed to renegotiate the UK Brexit deal.
With Britain heading to the polling stations today, City traders are trying to protect themselves from losses when the exit polls are released tonight.
Sterling volatility has soared overnight, hitting its highest level since the Brexit vote in 2016. That means that investors are expecting the pound to move sharply once the result of the election becomes clear.
The premium for pound puts over calls over the next week jumped to its highest since September 2016 at nearly 6%. That means more investors are wanting downside protection by buying the right to sell the pound over the next week.