Bank of America Global Research notes that option flow has turned bearish on CAD and bullish on SEK.
"Among G10 currencies, cumulative put/call ratio is currently lowest for NOK and NZD, and highest for CAD and CHF. This means option investors have seen the most favorable upside for NOK and NZD, and have been holding bearish views for CAD and CHF. Understandably so, the Norges Bank and the RBNZ are the most hawkish among G10 central banks and stand ready to raise the policy rate," BofA notes.
"Among the so-called “high-betas”, open interest now favors USD upside against CAD and AUD for the rest of the year. On the other hand, unexpired open interest is bullish for NZD, as investors expect rate-hike decision in the upcoming October RBNZ meeting," BofA adds.