That said, the one-month risk reversal of the USD/CAD, a spread between the call options and the put options, drop for the second consecutive day to -0.020 by the end of Tuesday’s North American session. With this, the weekly RR prints the biggest fall in four weeks.
On Tuesday, US Nonfarm Productivity improved to -4.6% during the second quarter , -4.7% expected and -7.4% prior, whereas the Unit Labor Cost increased to 10.8% from 12.7% prior and 9.5% market consensus during the said period. Before that, the USAdditionally, St. Louis Fed President James Bullard said on Tuesday that he wantsat 4% by the end of the year. This joins recently firmer interest rate futures suggesting nearly 70% odds favoring the 75 basis points of a Fed rate hike in September.
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