USD/CHF ignores options market signals to extend bounce off four-month low beyond 0.9400

Anil Panchal FXStreet

USD/CHF snaps four-day downtrend, grinds higher around the intraday top of 0.9426 as sellers retreat from the lowest levels since April, marked the previous day. In doing so, the Swiss currency (CHF) pair ignores recently positive options market signals ahead of the preliminary readings of the US Michigan Consumer Sentiment Index (CSI) for August.

That said, one-month USD/CHF risk reversal (RR), a difference between the call options and the put options, prints the strongest negative figures since July 29.

With this, the daily options market gauge turned out to be -0.015 while the weekly RR prints the -0.010 mark. It should be noted that the USD/CHF RR for the week jumped the most in five weeks by the end of last Friday.

Also read: USD/CHF Price Analysis: Surrenders the 200-DMA as sellers eye 0.9200

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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