One-month risk reversal on Palladium (XPD/USD), a measure of the spread between call and put prices, not only snaps a two-day uptrend but also marks the heaviest fall since last Thursday, according to data source Reuters. 

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. That said, the daily difference between them slumps to -0.012 by the end of Wednesday’s trading session, per Reuters.

The moves could be linked to the XPD/USD price performance that prints a three-day uptrend of around $2,650 by the press time of early Thursday.

As the options market signal favors the palladium bears, sluggish momentum amid the pre-ECB caution and a light calendar tests the commodity traders.

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