💷Sterling 1y Risk Reversals Tick The Least Bearish In Two Years: Cable FX Macro

• 1y tenor GBP/USD risk reversals read at 124bps in favour of puts over calls, this is the least sterling bearish the options market has been since early 2022 and compares to the 1-year average of 155bps

• The 1m risk reversal tenor is now ticking at 20bps in favour of puts, 1m volatility is steady at 7.265% as the structure inverts to see 1w tenor at 7.635%

• GBP/USD is paring losses from Tuesday while it remains above its 20DMA at 1.2722