USD/CHF justifies upbeat options market signals at five-week high around 1.0950
|USD/CHF bulls take a breather at the highest levels since April 11 after rising the most in two months the previous day as it justifies the bullish options market bias for the Swiss Franc (CHF) pair amid a broad US Dollar rally ahead of the key data/events.
That said, the US Dollar traces upbeat Treasury bond yields amid hawkish Fed bets and favorable data at home. Adding strength to the greenback could be the hope that the US policymakers will be able to extend the debt ceiling after the latest positive comments from them.
Also read: Forex Today: Not even risk appetite slows the Dollar
At home, the one-month risk reversal (RR) of USD/CHF, a gauge of the spread between calls and puts, braces for the second weekly positive close with the 0.0895 latest figures. It’s worth noting that the daily RR also printed a two-day uptrend with the 0.005 number by the end of Thursday’s North American session, per Reuters options market data.
While the fundamentals are in favor of the USD/CHF bulls, the Swiss Franc (CHF) pair’s further upside hinges on Fed Chairman Jerome Powell’s speech and US debt ceiling negotiations.
Hence, USD/CHF buyers are in the driver’s seat but fresh long positions should be taken with care.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.