(Reuters) - Sterling implied volatility rose sharply on Tuesday as lawmakers prepared to vote on a divorce deal after Prime Minister Theresa May won last-minute assurances from the European Union.
Overnight volatility was bid at the highest since June 2016 around 25 vols. One-month vol was at the highest since mid-January having risen around 2.5 vols since the start of this month.
Implied volatility is a gauge of expected swings in a currency over a certain period.
Reporting by Sujata Rao and Richard Pace; editing by Tom Finn