Options Traders Sour on Pound as Bets on BOE Rate Cuts Grow

Options traders are turning against the pound as the UK currency heads for its longest losing streak against the dollar in two years.

One-month risk reversals — which show the difference in demand for bullish and bearish options — reflect the most negative outlook for the pound since February. The measure spans the next Bank of England and Federal Reserve decisions, as well as President Donald Trump’s Aug. 1 tariff deadline.