USD/MXN remains on the back foot around $16.71 while reversing Tuesday’s corrective bounce off the lowest level since late 2015 during a two-day losing streak on early Thursday in Asia. In doing so, the Mexican Peso (MXN) pair fails to portray the US Dollar strength while also showcasing the receding bullish bias of the MXN traders in the options market.

That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, rose for the second consecutive day to 0.024 by the end of Wednesday’s North American trading session.

In doing so, the options market figures flag the options market’s expectations of witnessing a corrective bounce in the USD/MXN price. It should be noted that the options market gauge consolidates the biggest weekly RR slump since early June with 0.067 weekly RR mark at the latest.

Elsewhere, the US Dollar Index (DXY) fades recovery from its 15-month top, following a two-day winning streak to refresh the weekly top around 100.55, as market players seek more clues amid a sluggish Asian session. That said, the greenback’s gauge versus the six major currencies retreat to 100.15 by the press time.

Also read: USD/MXN: Peso to hold gains for the time being – ING