The British Pound Sterling was one of G10 last week’s main losers, remaining shaky on Friday, January 13 as it was confirmed that Prime Minister Theresa May would give a speech on Tuesday on Britain’s plan to leave the European Union.
One-week implied sterling volatility – options contracts which allow traders to bet or hedge against near-term swings in the currency, spiked to their highest since October at 14.775 GBPSWO=.
It was also set to be the pound’s worst week against the euro since the start of October. It barely budged at 87.25 pence per euro EURGBP=D4 on Friday but was down almost 2 percent from where it started the week.
Against the dollar it was a touch higher on the day at $1.2180 GBP=D4 but on course for its fifth weekly drop in the last six, having hit a three-month low of $1.2038 on Wednesday.
Meanwhile, the euro EUR=EBS clawed up to $1.0630 to bolster a fourth straight week of gains.