Heightened Brexit fears are evident through the three month GBP/USD implied volatility gauge, which now trades at highest level since 2010.
Most investment banks are betting on 1.38-1.35 levels in the next three months time period. A messy Brexit is also seen pushing the UK economy into recession.
Implied volatility spanning the June vote jumped to a six-year high of 15%. Rise in implied volatility is usually an indication the markets fear sharp swings in price.
(Market News Provided by FXstreet)
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