USD/CAD risk reversals drop to lowest since Oct. 18, 2010

• USD/CAD one-month 25-delta risk reversals show increased demand for CAD calls. 

USD/CAD one-month 25-delta risk reversals are being paid at 0.225 CAD calls compared to 0.20 CAD calls yesterday. Further, at 0.225, the risk reversals gauge is at its lowest since Oct. 18, 2010. 

The rising demand for CAD calls indicates USD/CAD could revisit July low of 1.2061 soon. 

Risk reversals chart