#USDCAD @ 1.30261 leans bearish towards 1.3000 on downbeat options market signals
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
USD/CAD remains pressured around the lowest levels in a fortnight amid the sluggish European morning on Monday. That said, the Loonie pair seesaws near 1.3030 during the four-day downtrend amid the bearish bias of the options market traders.
One-month risk reversal (RR) on USD/CAD, a measure of the spread between call and put prices, dropped during the last two consecutive days, while also printing the weekly negative, per the data source Reuters.
A call option gives the holder the right but not the 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 weekly RR dropped to -0.130 by the end of Friday.
The options market signal also follows the latest USD/CAD RR on the daily, to -0.163 at the latest.
Considering the broad US dollar pullback, as well as the bearish options market signals, the USD/CAD pair may ignore the recent weakness in the oil prices, Canada’s main exports to lure the pair sellers.
Also read: USD/CAD stay pressured towards 1.3000 amid firmer oil, USD weakness ahead of US inflation
[/s2If]
Join Our Telegram Group
