Sterling volatility drops further as Brexit risk premium falls

LONDON: Expected price swings in the British pound or implied volatility fell to a 10-week low on Thursday as growing optimism that Britain will avoid a no-deal Brexit encouraged traders to reduce their risk premium on the currency.

One-month sterling implied volatility fell to a 2-1/2 month low at 10.35 "vol" as it is commonly known, its lowest level since Nov. 8, according to Refinitiv data.

It briefly hit a more than two-year high above 15 vol in mid-November.