USD/CAD: Risk reversal suggests CAD bulls stepping back, Canadian budget in focus
|One-month risk reversal on USD/CAD, a measure of the spread between call and put prices, recedes bearish bias to a neutral 0.00 level during the last week, after declining for two consecutive weeks before that, according to data source Reuters.
Given the reduction in the negative figures, suggesting the call option gains momentum versus the put option, USD/CAD buyers are likely returning.
This could be because of the cautious sentiment ahead of the key budget presentation by Finance Minister Chrystia Freeland, up for publishing at 20:00 GMT on Monday. Although the government is likely to inflate taxes, as widely expected, any disappointment may not be taken lightly as the US-neighbor is yet to overcome the pandemic like America and the UK.
At press time, USD/CAD takes offers around 1.2500, refreshing intraday low, following its initial positive performance in Asia.
Read: USD/CAD holds mild gains above 1.2500 ahead of Canadian budget
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.