USD/CAD: Options market turn bullish ahead of US, Canada employment data

One-month risk reversal (RR) on USD/CAD, a measure of the spread between call and put prices, reverses the previous two-day bearish bias to a neutral +0.013 level during early Friday, according to data source Reuters. 

The positive RR figures suggest the call option gains momentum versus the put option, which in turn backs USD/CAD buyers.

This could be because of the cautious sentiment ahead of the key employment figures from the US and Canada. Also supporting the USD/CAD bulls is the WTI’s mild gains, as Canada relies on crude exports, as well as the Bank of Canada’s bullish outlook.

Read: USD/CAD: Bulls and bears jostle around mid-1.2100s ahead of US NFP, Canadian jobs data

At the press time, USD/CAD picks up bids to refresh intraday top near 1.2170, up 0.16% on a day. However, bulls aren’t likely to keep the reins until witnessing a clear break above 1.2245-50 resistance confluence, comprising 2018 low and a downward sloping trend line from March 18.