USD/CNH risk reversals hit record low, point to more pain in the USD

Omkar Godbole FXStreet Contributor

Risk reversals on USD/CNH, a gauge of calls to put, plunged to record lows, indicating investors are adding bets to position for further strength in the offshore Chinese yuan (CNH).

As of writing, the one-month 25 delta risk reversals (CNH1MRR) are trading at a lifetime low of -0.688. Notably, the gauge stood at -0.20 on Jan. 4.

The negative number indicates that the demand for put options (bearish bets) is higher than that for calls (bullish bets).

CNH1MRR

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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