Rate extends the day's losses as firm GBP.....>

CABLE: Rate extends the day's losses as firm GBP selling going through in both

GBP/USD and EUR/GBP (which rises to a multi-month high). All this GBP weakness

feeding through very well to GBP hedging volumes, with put activity surging on

the most recent downtick.

-Put/call ratio now sits well above 4.0, with put strikes at $1.21, $1.22 and as

low as $1.1965. Put spreads have been a popular strategy, with a Gbp98mln

1.23/1.24 one-week put spread one of the more recent trades to cross.

-Reflecting this, the GBP/USD risk reversals curve has dumped, with contracts

that capture the Oct31 Brexit date falling the furthest. Although the various

risk reversals/volatility contracts are still yet to re-visit the lows seen

mid-March when the No Deal risk seemed even higher.