One-month risk reversal on USD/CAD, a measure of the spread between call and put prices, prints the highest level in December for Monday per data source Reuters. 

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

That being said, the daily difference between them snaps a two-day downtrend to rise to +0.138 at the latest.

The options market scenario matches the USD/CAD price rally that refreshed 2021 top the previous day, mainly on the downbeat performance of Canada’s key export item WTI crude oil. It’s worth noting that the Loonie pair grinds higher around 1.2940 by the press time of the early Asian session on Tuesday.

Read: USD/CAD hits annual highs in 1.2960s as crude oil tanks amid Omicron concerns