USD/CHF risk reversal drops the most in a week

Anil Panchal FXStreet

One-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, prints -0.050 readings on October 05, per the latest data from Reuters. The figures suggest that the pair traders are turning bearish a three-day indifference, not to forget mentioning the heaviest downside bias in one week.

The same doesn’t match the USD/CHF price moves as the major currency pair snaps a three-day downtrend while picking up bids to 0.9270, up 0.25% intraday, by the press time.

That said, the RR has two more critical events of this week left to confirm the scenario and that could be right if the September month’s PMI and jobs report back Fed Chair Jerome Powell’s cautious optimism and support to the tapering.

In addition to the US data, fears concerning China and US stimulus, as well as debt ceiling extension, are also important events to watch for near-term direction.

Read: USD/CHF Price Analysis: Sellers challenge 38.2% Fibonacci retracement

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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