The Wall Street Journal: Pound’s message to investors: Wake up and smell election reality

Investors are scrambling to protect themselves against big moves in the British pound ahead of this week’s election, the outcome of which many had taken for granted.

One gauge of how much it costs investors to protect themselves against a slide in sterling GBPUSD, -0.1085%EURGBP, +0.2981% hit levels on Monday not seen since the U.K.’s surprise vote to leave the European Union last June. That jump in so-called one-week risk reversals in currency derivatives markets came after weeks of calm in which it appeared the ruling Conservative Party was heading for a landslide victory in Thursday’s election.

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