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.
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.