USD/CHF: Risk reversal prints four-day downtrend
|One-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, drops for the fourth consecutive day to recently around -0.012 per the data source Reuters.
It’s worth noting that the daily RR slumped the most in a month the previous day amid the market’s risk-off mood, down -0.413, whereas the weekly reading marked the lowest prints in 14 months with a -0.513 level for the week ended on November 26, per Reuters.
Hence, it appears that the options market bears are holding controls tightly amid indecision over the Fed’s next move and fresh covid woes triggered by ‘Omnicron’.
That said, the USD/CHF pair consolidates the biggest daily losses since March 2020 by the press time of early Monday, up 0.30% intraday around 0.9255.
Moving on, speeches from US President Joe Biden and Federal Reserve (Fed) Chairman Jerome Powell will be important for the USD/CHF traders to watch for fresh impulse.
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.