USD/CHF: Options market turns most bearish since early September

One-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, drops the most since the week ended on September 03, per the latest data from Reuters.

The same matches the USD/CHF price moves as the pair prints a three-day downtrend, pressured around the five-week low of 0.9170 amid the early European session on Friday.

Risk reversal flashes a -0.425 figure for the week ending October 22, suggesting a strong bearish bias among the USD/CHF traders. It’s worth noting that the daily RR drops for the second consecutive day to -0.050 at the latest.

The Swiss Franc’s safe-haven appeal backs the USD/CHF sellers during the risk-off mood. However, the chatters over the Fed’s tapering may help the US dollar to regain its bullish stand. For that, Fed Chair Jerome Powell should follow the latest fashion of highlighting inflation fears, as well as today’s preliminary PMI’s for October also need to print hawkish numbers.

Read: USD/CHF stays below 0.9200 amid risk-off mood, US PMI eyed