USD/CNH options market has shed bearish bias
|The USD/CNH pair has likely bottomed out at 6.7373 (Jan. 11 low), options data indicates.
The one-month 25 delta risk reversals (CNH1MRR) are currently trading near zero, representing a neutral bias, having hit a multi-month low of -0.55 on Jan. 10.
The quick recovery from -0.55 to near zero represents a sharp drop in demand or the implied volatility premium for put options (bearish bets).
Put simply, investors are unwinding bets initiated to position for strength in the Chinese yuan.
CNH1MRR
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