• USD/CHF holds lower grounds below 0.9700 on downbeat options market signals

Market news

22 July 2022

USD/CHF holds lower grounds below 0.9700 on downbeat options market signals

USD/CHF remains pressured around the weekly bottom, despite recently picking up bids to 0.9670, during Friday’s Asian session. In doing so, the Swiss currency (CHF) pair justifies bearish bias in the options market.

That said, the one-month risk reversal (RR) for the USD/CHF, a spread between the call options and the put options, printed the second daily negative of -0.030 the previous day. The same direct the weekly RR to snap the two-week uptrend.

In addition to the options market signals, the CHF’s status as a haven and the market’s risk-off mood, amid fears of recession and the central bank’s aggression, appears to exert downside pressure on the USD/CHF prices.

It’s worth noting, however, that flash readings of the US S&P Global PMIs for July will be crucial to watch for the USD/CHF traders for intraday directions. Additionally important will be the chatters surrounding the global economic slowdown.

Also read: USD/CHF Price Analysis: Trips down below 0.9700 as mood improves

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