USD/CAD: Option markets become most CAD bullish in one week

One-month risk reversal of USD/CAD, a gauge of calls to puts, drops the most in one week on Thursday.

This goes against the USD/CAD moves where the quote bounces off three-week lows, picking up bids off-late to 1.2530, up 0.07% intraday.

Risk reversals flash the -0.0370 level, favoring USD/CAD by the press time, according to data provided by Reuters. The negative reading indicates call options are drawing lesser premium (option price) than put or bearish bets.

Technically, USD/CAD sellers need to break the 1.2500 round-figure for further governance. However, the corrective pullback may have a limited reach unless breaking the 50-day SMA level of 1.2600.