USD/CHF pares weekly gains around 0.9655, mildly offered after failing to refresh the monthly peak the previous day.
That said, the one-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, paused a six-day uptrend with the latest 0.00 figures for Wednesday, per the data source Reuters.
It’s worth noting that the options market gauge still braces for the second weekly positive, in line with the USD/CHF prices, despite recent weakness in the numbers.
The options market bias could be attributed to the broad US dollar pullback ahead of second-tier US data and the all-important speech from Fed Chairman Jerome Powell at the Jackson Hole symposium, on Friday.
It should be observed that mixed US data and the market’s anxiety ahead of the key event seemed to have probed USD/CHF bulls of late.
On Wednesday, US Durable Goods Order for July dropped to 0.0% versus 0.6% expected and an upwardly revised 2.2% previous reading. However, Nondefense Capital Goods Orders ex Aircraft rose past 0.3% market consensus to 0.4%, versus 0.9% prior. Further, Pending Home Sales improved to -1.0% MoM in July versus -4.0% expected and -8.9% prior (revised down from -8.6%). On a yearly basis, the Pending Home Sales decreased by 19.9%, versus the previous contraction of 20.0%.
Looking forward, the second version of the US Q2 GDP will join the US Personal Consumption Expenditure (PCE) for the said period to decorate the calendar. However, major attention will be given to RBNZ Governor Orr’s speech at the Jackson Hole for fresh impulse.
Also read: USD/CHF Price Analysis: Clears the 50/100-DMAs on its way to 0.9700
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD battles 1.2300 ahead of BoE interest rate decision
GBP/USD is battling 1.2300, refreshing a five-month low.in European trading on Thursday. The pair is weighed by the Fed's hawkish stance and increased odds of a BoE rate hike pause, following a surprise fall in UK inflation and SNB's unexpected rates-on-hold decision.
EUR/USD keeps losses near 1.0650 amid US Dollar strength
EUR/USD is consolidating losses near 1.0650 in the European trading hours on Thursday. The Fed, as expected, kept rates unchanged but indicated that one more rate hike before the year-end could be appropriate. US yields sit at multi-year highs, underpinning the US Dollar.
Gold tests key support near $1,925, focus on US data
Gold price is holding lower ground near $1,925 in the European session on Thursday. Investors seem to shift their focus on upcoming US data after the US Federal Reserve's hawkish hold on Wednesday triggered a fresh US Dollar rally.
XRP price tests the $0.51 support zone while CEO Brad Garlinghouse critiques the SEC and Chair Gensler
XRP price outlook is bullish as the asset tests the supply zone at $0.5174. Pro-XRP attorney John Deaton shared his views on the likelihood of a settlement by the SEC in its lawsuit against Ripple.
BoE Interest Rate Decision: Cooling UK inflation raises doubts over another hike
The UK central bank is on track for another 25 bps hike on Thursday, lifting interest rate to 5.50%. The Bank of England could signal the end of its tightening cycle. Pound Sterling set to rock after surprise fall in UK inflation raises odds of a BoE rate hike pause.