USD/CAD justifies bearish bias targeting 1.3200 amid downbeat options market signals

USD/CAD remains pressured towards 1.3200, after posting the biggest daily loss in a week, as market players trace bearish options market signals amid early Wednesday.

That said, a one-month risk reversal (RR) of the USD/CAD pair, a gauge of the spread between the call and put options, prints the first daily fall while marking the -0.048 figure at the latest, per Reuters options market data.

It’s worth noting, however, that the weekly RR printed the strongest bearish options market bias in three weeks as it fell to -0.048 by the end of Tuesday’s North American session.

Apart from the bearish options market data, upbeat Oil price and the US Dollar’s inability to justify the hawkish Fed bias, amid softer US data, keeps the USD/CAD bears hopeful.

Also read: Canadian Dollar makes modest gains after Oil price jacks higher on supply fears