USD/CAD risk reversals, a gauge of calls to puts, traded at 0.15 in favor of call options on Tuesday versus 0.30 on Sept. 8, according to data source Reuters.
The pullback indicates the excess premium drawn by calls over puts has declined, a sign of weakening demand for the call options or bullish bets.
The options market has trimmed the bullish bias, possibly tracking the pair's failure to capitalize on a bullish breakout confirmed last week.
USD/CAD jumped over 1% to 1.3235 on Sept. 8, invalidating the trendline falling from March highs. So far, however, the bullish follow-through has remained elusive. The pair has been restricted mainly to a narrow range of 1.31-132 since Sept.10.
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