USD/CAD justifies the strongest bearish options market signals in a month to refresh weekly low near 1.3550
USD/CAD takes offers to refresh the intraday low near 1.3560 amid the early hours of Thursday’s Asian session. In doing so, the Loonie pair takes clues from the options market, as well as the latest retreat in the US Dollar, ahead of a slew of top-tier data and events from the US.
One-month Risk Reversal (RR) of the USD/CAD pair, a measure of the spread between call and put prices, dropped the most in a month by the end of Wednesday’s Asian session. That said, the RR dropped to -0.093 in its latest readings per the options market data from Reuters.
Not only on a daily basis, but the monthly RR also flashed red marks with a -0.110 figure whereas the weekly numbers pleased the USD/CAD sellers with a -0.093 level.
Additionally, the upbeat Canadian GDP and the latest shift in the Federal Reserve (Fed) officials’ push for a pause in the rate hike trajectory, as well as hopes that members of the US House of Representatives will support the debt ceiling bill’s passage, also weigh on the pair.
Also read: USD/CAD Price Analysis: Bears are in the market, but bulls flexing
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.
