USD/CAD risk reversals have shed CAD put bias
USD/CAD risk reversals (CAD1MRR) are currently trading near zero, having topped out 0.35 on Dec. 31.
The sharp drop represents a slide in demand or implied volatility premium for CAD put options (bearish bets).
Put simply, the options market is no longer bearish on the CAD (bullish on USD/CAD). As of writing, the USD/CAD pair is trading at 1.3262, having clocked a low of 1.3180 on Jan. 9.