Brexit delay concerns bubble up in FX derivative markets

Concerns about the British pound are growing in currency derivative markets as uncertainty rises over British Prime Minister Theresa May’s request to European Union officials to delay Brexit.

Risk reversals in the pound maturing in two weeks, a gauge of demand for the currency through calls to puts, fell to their lowest levels since mid-December.

Risk reversals maturing over one to three months registered bigger declines, falling to their lowest levels since November, even as broader spot markets stabilised around the 1.3160 dollar levels.