USD/CHF extends the early Asian session pullback from the highest levels since May 2020, marked the previous day, as sellers attack the 0.9700 threshold during the early Friday morning in Europe.

In doing so, the Swiss currency (CHF) pair ignores the hawkish signals portrayed by the options market, via risk reversal (RR). That said, a one-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, rises for the second consecutive month, as well as for the second week, by the press time. Also portraying the options market's hawkish mood is the daily RR print of 0.050, a fourth positive figure in a row.

It’s worth noting, however, that the latest pullback in the USD/CHF prices could be linked to the US dollar’s retreat from the 20-year high ahead of the US Core Personal Consumption Expenditures (PCE) Price Index for March, expected to ease to 5.3% YoY versus 5.4% prior. The data is known as the Fed’s preferred gauge of inflation.

Also challenging the USD/CHF bulls is the cautious sentiment ahead of a speech from the Swiss National Bank’s (SNB) Chairman Thomas Jordan.

Read: USD/CHF juggles around 0.9720 as investors await SNB’s Jordan speech