USD/CAD grinds near 1.3350 despite strong options market signals as US/Canada employment data loom

Anil Panchal FXStreet

USD/CAD seesaws at the highest level in a month, making rounds to 1.3350 during early Friday morning in Asia, as traders await the top-tier employment statistics from the US and Canada for July.

It’s worth noting that the Loonie pair trader’s doubts about the US Dollar’s latest retreat jostle with the firmer prices of Canada’s main export item, namely WTI crude oil, to also challenge the USD/CAD pair prices at the multi-day high amid a sluggish Asian session.

Even so, the options market traders remain bullish about the pair. That said, the one-month risk reversal (RR) of the USD/CAD price, a gauge of the spread between the call and put options, remains on the front foot for the third consecutive day while posting a 0.059 figure by the end of Thursday’s North American session.

More importantly, the weekly RR braces for the biggest jump since late April while printing 0.130 numbers by the press time.

With this, the Loonie pair appears more likely to register the consecutive third weekly gain but may witness hardships in defending the biggest weekly jump in 10 unless the scheduled US data prints comparatively better figures than their Canadian counterparts.

Also read: USD/CAD Price Analisis: Bulls gave up following weak US data

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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