• USD/CHF regains 0.9800, justifies options market optimism to snaps two-day downtrend

Market news

13 July 2022

USD/CHF regains 0.9800, justifies options market optimism to snaps two-day downtrend

USD/CHF takes the bids to refresh intraday high around 0.9810 to post the first daily gains in three during Thursday’s Asian session.

In doing so, the Swiss currency (CHF) pair justifies the hawkish bias portrayed by the USD/CHF options traders.

That said, the one-month risk reversal (RR) for the USD/CHF, a spread between the call options and the put options, brace for the second weekly run-up with the latest print of 0.140.

The options market’s optimism for the USD/CHF pair could be linked to the broad US dollar rally amid fears of higher Fed rates and recession. The market’s risk-aversion amplified the previous day after the US Consumer Price Index (CPI) for June jumped to the highest level in 40 years to 9.1% YoY versus 8.8% expected and 8.6% prior.

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