USD/CHF: Value of CHF calls hits highest since March 2018

Omkar Godbole FXStreet Contributor

Risk reversals on Swiss Franc (CHF1MRR), a gauge of calls to puts, dropped to the lowest level in 17-months, indicating the investors are adding bets to position for a rise in the Swiss currency.

The USD/CHF one-month 25 delta risk reversals fell to -1.41 – a level last seen in March 2018.

The negative number indicates the implied volatility premium or demand for CHF calls (bullish bets) is higher than that for CHF puts (bearish bets).

Notably, the gauge stood at -0.825 on Aug. 1, meaning the demand for CHF bullish bets has increased sharply this month. After all, re-escalation of the US-China trade tensions have triggered a flight to safety and the Swiss Franc is one of the classic haven currencies.

CHF1MRR

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD weakens below 1.1900, USD remains firm

EUR/USD has slipped back into its downtrend, drifting below the 1.1900 support as the US Dollar’s recovery keeps gathering traction. Indeed, the Greenback’s push higher gathered pace after President Trump named Kevin Warsh as Jerome Powell’s successor and US Producer Prices rose more than expected in December.

GBP/USD retreats further, threatens 1.3700

Selling pressure remains on the rise, dragging GBP/USD back towards three-day lows around 1.3720-1.3710 at the end of the week. Cable’s retracement reflects a firmer rebound in the Greenback as investors digest Trump’s announcement of the next Fed chair.

Gold remains offered just above $5,000

Gold is extending its pullback, managing to trim part of its strong losses and regain the $5,000 mark and beyond on Friday. The precious metal’s severe drop comes amid broad-based profit-taking across the commodity space, alongside a firmer US Dollar and mixed US Treasury yields.

Stellar deepens correction, slipping to 3-month low as risk-off mood persists

Stellar continues to trade in the red, slipping below $0.20 on Friday, a level not seen since mid-October. Bearish sentiment intensifies amid falling Open Interest and negative funding rates in the derivatives market. On the technical side, weakening momentum indicators support further correction in XLM.

Microsoft sell-off etches $400 billion hole in market, second highest on record

Microsoft's (MSFT) post-earnings cratering on Thursday sent other indices into pullback mode despite the narrow nature of its weakness.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple deepen sell-off as bears take control of momentum

Bitcoin, Ethereum, and Ripple continued their corrections on Friday, posting weekly losses of nearly 6%, 3%, and 5%, respectively. BTC is nearing the November lows at $80,000, while ETH slips below $2,800 amid increasing downside pressure.