USD/CAD risk reversals hit 16-month low on demand for CAD calls
USD/CAD risk reversals (CAD1MRR) are currently trading at -0.1, the lowest level since February 2018.
The negative number indicates the implied volatility premium or demand for CAD calls is higher than that for CAD puts, meaning the CAD bullish bias is currently the strongest in 16-months.
USD/CAD is currently trading at 1.3376, having hit a low of 1.3325 earlier this month.
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.