USD/CAD risk reversals hit lowest since May 14, indicating a drop in the implied volatility premium for CAD puts. The Bank of Canada kept rates unchanged on Wednesday but said the developments since April warrant higher borrowing costs. The hawkish tinge put a bid under the Canadian dollar, pushing the USD/CAD down to 1.2836 – the lowest level since May 25. Further, the implied volatility premium for CAD puts (bearish bets) dropped, the risk reversals show. The USD/CAD (CAD1MRR) one month 25 delta risk reversals fell to 0.175 (lowest since May 15) from 0.20, indicating a slight drop in demand for CAD puts. That said, the risk reversals are still holding the positive territory, meaning the implied volatility premium for CAD puts is still higher than the implied volatility premium for CAD calls, i.e. demand for CAD puts remains higher than CAD calls. CAD1MRR FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next OECD raises UK growth forecast FX Street 5 years USD/CAD risk reversals hit lowest since May 14, indicating a drop in the implied volatility premium for CAD puts. The Bank of Canada kept rates unchanged on Wednesday but said the developments since April warrant higher borrowing costs. The hawkish tinge put a bid under the Canadian dollar, pushing the USD/CAD down to 1.2836 - the lowest level since May 25. Further, the implied volatility premium for CAD puts (bearish bets) dropped, the risk reversals show. The USD/CAD (CAD1MRR) one month 25 delta risk reversals fell to 0.175 (lowest since May 15) from 0.20, indicating a slight drop in… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
