USD/CHF leans bullish towards 0.9600 on upbeat options market signals

Anil Panchal FXStreet

USD/CHF rises to the fresh high in two weeks as broad US dollar strength joins firmer upbeat options market signals during Friday’s Asian session. That said, the Swiss currency (CHF) pair prints a five-day uptrend to refresh a fortnight’s peak around 0.9585, at 0.9575 by the press time.

One-month risk reversal (RR), the difference between the call options and put options, jumps to the highest since August 04 as the daily figure marks 0.070 level by the end of Thursday’s North American session. In doing so, the options market indicator rises for the third consecutive day.

It’s worth noting that the weekly RR also reverses the previous losses and adds some more gains as it rises to 0.170 by the press time, versus the -0.15.

Elsewhere, the US Dollar Index (DXY) begins Friday on a firmer footing as it refreshes the monthly high around 107.70, up for the third consecutive day. While seeking catalysts for the latest DXY strength, firmer US data, hawkish Fedspeak and geopolitical/economic risks gain major attention.

Moving on, Swiss Industrial Production for the second quarter (Q2), prior 7.9%, will be important for USD/CHF pair traders to watch for clear directions. However, major attention should be given to qualitative factors for precision.

Also read: Forex Today: Dollar soars on hopes the US could avoid recession despite the aggressive Fed

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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