Palladium Price News: XPD/USD risk reversal on the way to snap three-week downtrend

One-month risk reversal on Palladium (XPD/USD), a measure of the spread between call and put prices, not only reversed the previous week’s upside momentum but also rises for the third straight day, according to 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 said, the weekly difference between them rises to +0.010 after three weeks of a downtrend. Additionally portraying the bullish bias could be the daily print of +0.005 per the options market data ending on September 15.

The moves could be linked to the XPD/USD price performance as the precious metal keeps the previous day’s bounce off 14-month lows around $2,000.

As the options market signal favors the palladium buyers, sluggish momentum amid the pre-US Retail Sales caution may fade soon.

Read: US August Retail Sales Preview: Can gold turn bullish on a weak print?