USD/CHF risk reversal jumps the most in a week

Anil Panchal FXStreet

The options market turns most bullish on the USD/CHF in over a week, per the latest data from Reuters.

One-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, snaps a three-day downtrend to rise the most since November 01, per Reuters. That said, the latest USD/CHF RR is +0.150 versus the -0.050 figure marked on Friday.

Although the RR suggests the market’s bullish bias, the USD/CHF prices remain sluggish, around 0.9130 at the latest.

This could be linked to the market’s anxiety over the Fed reshuffle, US stimulus and tapering tantrums.

Read: S&P 500 Futures snap five-day uptrend on mixed concerns, Fed’s Powell eyed

However, today’s speech from Fed Chairman Jerome Powell can provide short-term clarity over the market moves. In his latest speech, the Fed Boss dumped ‘transitory’ concern over inflation and renewed market fears.

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.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.