USD/CAD grinds near 1.3350 despite strong options market signals as US/Canada employment data loom
|USD/CAD seesaws at the highest level in a month, making rounds to 1.3350 during early Friday morning in Asia, as traders await the top-tier employment statistics from the US and Canada for July.
It’s worth noting that the Loonie pair trader’s doubts about the US Dollar’s latest retreat jostle with the firmer prices of Canada’s main export item, namely WTI crude oil, to also challenge the USD/CAD pair prices at the multi-day high amid a sluggish Asian session.
Even so, the options market traders remain bullish about the pair. That said, the one-month risk reversal (RR) of the USD/CAD price, a gauge of the spread between the call and put options, remains on the front foot for the third consecutive day while posting a 0.059 figure by the end of Thursday’s North American session.
More importantly, the weekly RR braces for the biggest jump since late April while printing 0.130 numbers by the press time.
With this, the Loonie pair appears more likely to register the consecutive third weekly gain but may witness hardships in defending the biggest weekly jump in 10 unless the scheduled US data prints comparatively better figures than their Canadian counterparts.
Also read: USD/CAD Price Analisis: Bulls gave up following weak US data
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.