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  • USD/CAD one-month 25 delta risk reversals fell to lowest level since June 5.  
  • The gauge indicates falling demand for CAD puts (bearish bets).  

The USD/CAD one-month 25 delta risk reversals (CAD1MRR) are being paid at  0.175 – a level that was  last seen on June 5 – vs the recent high of 0.325.

The decline from 0.325 to 0.175 represents a falling demand or a falling implied volatility premium for CAD puts and adds credence to the  recent decline in the USD/CAD from 1.3386 to 1.3080.  

CAD1MRR