USD/CAD plummets to 1.2810 while bracing for the first weekly loss in five heading into Friday’s European session.

In doing so, the Loonie pair justifies the bearish bias in the options market, reflected via the risk reversal (RR) data derived from the spread of calls and put options.

It’s worth noting that the one-month RR for the USD/CAD snaps a four-day uptrend to -0.162, the lowest since mid-April, on weekly basis. The daily RR also drop for the first time in three days, to -0.087 at the latest.

The bearish bias of the USD/CAD prices could be linked to the pullback in the US dollar and recently firmer oil prices.

Read: USD/CAD Price Analysis: Mildly offered between 100 and 200 EMAs