Goldman Sachs: US Dollar Likely to Stay Strong Despite Oil Price Retreat 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Sell the Bounce": Gold Rally Stalls Near $4165 as Fed Hawks Slam the Door on Rate Cuts — Targets $4000/$3600 
World Cup technology: from ref cams to AI analysts, cutting-edge research is changing the game 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Urban studies: Doing research when every city is different 
Stock Futures Dip as Investors Await Key Payrolls Data 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
SpaceX Stock Gets $175 Target as Analysts See Massive Growth Ahead 
Trump’s Iran Strategy: What Has Been Achieved After Three Months of Conflict? 
Geopolitical Shocks That Could Reshape Financial Markets in 2025 
 - EconoTimes)
We cannot appreciate why CAD has been appreciating against USD as Bank of Canada’s has decided to maintain status quo in its monetary policy, overnight rates are kept unchanged at 0.50% which is in line with forecasts.
CAD is unable to benefit from a rising oil price to the extent it suffers when the oil price falls. One way or the other there is not a lot pointing towards a notably stronger CAD short term.
You get to see lot more insights from implied volatility and risk reversals of USDCAD.
OTC FX of this pair has been bullish neutral for 1m to 6m expiries, reducing considerably among G7 currency segment contemplating neutral risk reversal bullish signals which are negligible.
During such tepid OTC market situation where IVs have been stubborn to rise, the long put ladder strategy is suitable that fetches a limited certain returns associated with unlimited risk as it proportionately employs more shorts in the spread because the underlying FX pair will experience little volatility in the near term (refer IV and risk reversal table). Such risk can also be mitigated by choosing narrow expiries.
Ideally, to execute this strategy, the options trader purchases an (1%) in-the-money delta put, short an at-the-money put and short another (1%) out-of-the-money put of the same expiration date.
At spot ref: 1.2913, go long in 2M USD/CAD put ladder (strikes 1.3150/1.2915/1.2760).
Indicative offer: Reduces cost about little more than 50% vs prem for ITM strike only.
Our put ladder is built as a standard put spread with tight strikes set at 1.3150/1.2915 financed by an OTM put with a strike at 1.2760.
Leaving only 140-150 pips between the former two strikes allows the profile to quickly reach the maximal possible leverage.
Unlike an usual put spread ratio, the maximal return is not reached on a given strike but over a wide region. It maximises the profitability of the trade via increased odds that the spot will trade in this region.
