USD/CAD grinds higher around the intraday top near 1.3790 during early Friday morning in Europe. In doing so, the Loonie pair ignores the downbeat signals from the options market.

That said, One-month risk reversal (RR) on USD/CAD, a measure of the spread between call and put prices, drops for the third consecutive week per the data source Reuters. 

A call option gives the holder the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. 

It’s worth noting that the weekly RR drops to -0.372 by the press time while the daily gauge of the options market prints a four-day losing streak with 0.187 being the latest print.

While searching for the bullish catalysts, the recent weakness in the oil prices, Canada’s main export, and the firmer US Treasury yields gain major attention.

Also read: USD/CAD aims to regain 1.3800 as oil retreats, Canada Retail Sales eyed