USD/CNY risk reversals slip to three-month low, nearly shed bullish bias

One-month risk reversal on USD/CNY, a guage of calls to puts, fell to 0.075 on Friday to hit the lowest level since Sept. 18, having peaked at 0.75 at the end of October, according to data source Reuters. 

A positive number is the result of call options (bullish bets) drawing stronger demand than puts (bearish bets), while a negative number represents greater demand for puts. 

As such, the decline from 0.75 to 0.075 indicates a weakening of demand for calls or bullish bets on USD/CNY. Essentially, the guage has neraly shed the bulloish bias. 

The USD/CNY pair is currently trading at 6.5375, having peaked at 7.1766 in May this year.