Palladium Price News: XPD/USD risk reversal drops the most in two months

Anil Panchal FXStreet

One-month risk reversal on Palladium (XPD/USD), a measure of the spread between call and put prices, not only drops for the second consecutive day but marked the steepest fall in the number since early July, 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 slumped to -0.162 for Thursday.

The moves couldn’t be linked to the XPD/USD price performance as the precious metal rebounds from an 11-month low to $2,223, up 0.98% intraday amid the initial hour of Friday’s European session.

Even as the options market signal favors the palladium bears, the recent risk-on mood and multi-day low hints at the commodity’s extension of the corrective pullback.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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