USD/CHF: Options market turns most bearish in two weeks

One-month risk reversal of USD/CHF, a gauge of calls to puts, drops the most since August 02, per the latest data from Reuters.

The same matches the USD/CHF price moves as the pair dropped during the last two days to the one-week low, before recently bouncing off 0.9109 to 0.9135, up 0.11% intraday by the press time of early Tuesday.

Risk reversals flashed a -0.075 figure for August 17, suggesting the strong bearish bias among the USD/CHF traders.

Although the Swiss Franc’s safe-haven appeal backs the USD/CHF sellers during the risk-off mood, the latest chatters over the Fed’s tapering and comparatively upbeat fundamentals have helped the US dollar to remain firm during the uncertain times. Hence, the pair sellers should wait for confirmation of the bearish impulse.

Read: USD/CHF consolidates near 0.9120 amid risk-off sentiment, US data eyed