USD/CHF leans bullish above 0.9800 on firmer options market signals, Swiss GDP eyed

Anil Panchal FXStreet

USD/CHF grinds higher around 0.9830, picking up bids to reverse the previous day’s pullback from a seven-week top, amid broad US dollar strength.

Also keeping the pair buyers hopeful are the options market’s signals, as well as optimism ahead of the second quarter (Q2) Swiss GDP, up for publishing on Monday.

It’s worth noting that the one-month risk reversal (RR), the spread of call versus puts, of USD/CHF printed the third weekly gain with the latest figures being 0.110. The daily RR, however, snapped a four-day uptrend with the -0.065 mark for Friday, per Reuters data.

Although the daily RR signals a corrective pullback of the USD/CHF pair, the strength of the weekly RR and broad challenges to risk keeps the pair buyers hopeful ahead of the key data.

Also read: USD/CHF advances towards a six-week high near 0.9860 ahead of US ISM Services PMI

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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