USD/CAD: Options market turns most bearish in over three weeks

One-month risk reversal (RR) on USD/CAD, a measure of the spread between call and put prices drops the most since August 20, according to data source Reuters. 

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. That said, the daily RR drops to -0.137 by the press time of early Monday, per Reuters.

The options market signal parts ways from the USD/CAD price performance as the Loonie pair bounces off monthly low to consolidate recent losses around 1.2540, up 0.12% intraday.

Given the off in the US and Canada, Monday is likely to remain as the sluggish day for USD/CAD prices. However, WTI moves and risk catalysts can entertain the pair traders.

Read: USD/CAD: Bounces off multi-week low near1.2500 as oil slumps