# FX options wrap - Showing the extent of central bank expectations

> Implied volatility on GBP/USD rose to 15.5 from 10.0 after a large UK inflation beat raised the probability of a December Bank of England hike. Sterling put risk-reversal premiums stayed elevated.

- Date: 2021-12-15 · published 2021-12-15T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/43865-fx-options-wrap-showing-the-extent-of-central-bank-expectations
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Higher option volatility and hike pricing signal expectations of sharper sterling moves. The effect on feed commodities is limited to currency-driven import costs.

## Read by commodity

- GBPUSD: neutral

## Sources

- reuters.com: https://www.reuters.com/markets/asia/fx-options-wrap-showing-extent-central-bank-expectations-2021-12-15/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.