Vassilis Karamanis

The pound rose above $1.30 for the first time since November on bets interest rates in the UK will stay above those of its main peers this year.

Traders look to be turning more optimistic on the dollar after its worst start to the year since Donald Trump’s first term as US President.

Traders are betting the European Central Bank will have to adopt a more aggressive approach to cutting interest rates as the risk of US tariffs and political turmoil in the region weighs on the bloc’s economy.

Nomura Holdings Inc. is crafting plans to rebuild its currency options business after a wave of staff exited the division in London and New York, according to people familiar with the matter.

Traders in the options market are preparing for the pound to tumble as much as 8% more as fiscal woes that prompted a painful selloff across UK markets last week weigh on the currency.

The offshore yuan tumbled sharply on Tuesday, briefly falling to the lowest level against the US dollar in more than two years, before paring the decline.

The euro gained on Tuesday after Europe escaped the latest round of Donald Trump’s trade tariff threats and as investors positioned for what historically has been the strongest month for the currency.

The euro gained on Tuesday after Europe escaped the latest round of Donald Trump’s trade tariff threats and as investors positioned for what historically has been the strongest month for the currency.

Europe’s traders are seeking to get ahead of the fallout from a pivotal US election by betting against the euro and hedging risks with the Swiss franc and German bonds.

Just before a hotly contested US election considered a toss-up, options traders across markets appear to be reducing risk and bracing for more volatility.