USD/CAD risk reversals adopt a bullish bias

USD/CAD turn positive, at highest since March 20.

Omkar Godbole FXStreet Contributor

The USD/CAD one-month 25 delta risk reversals (CAD1MRR) are being paid at 0.20 CAD puts vs 0.1 CAD calls on April 18.

The risk reversals turned positive on April 21, signaling the implied volatility premium for CAD puts is higher than the implied volatility for CAD calls. The data indicates CAD bearish bets are in demand and add credence to the recent rally in USD/CAD from 1.2527 to 1.2861.

CAD1MRR

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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