Bank of America closes EUR/GBP short position ahead of 0.86

"We went short EUR/GBP via a 3mth, zero premium risk reversal in May on our view thatvol adjusted skew was elevated to excessive levels. With EUR/GBP approaching 0.8600,we close this trade at 0.60% EUR. A clean break of this level may be hard to achieve aswe continue to believe that near-term political uncertainty is still a headwind. Top ofmind is the choice of a new Chancellor which has yet to be decided."