USDCNH remains firmer around the intraday high of 7.1380 while extending the week-start rebound from the monthly low during early Thursday. In doing so, the offshore Chinese Yuan (CNH) pair justifies the bullish signals from the options market.

That said, a one-month risk reversal (RR) ratio, a gauge of calls versus put, rose for the second consecutive day to 0.040 by the end of Wednesday’s North American trading session.

It’s worth noting that the weekly RR is still negative, at -0.050, and challenges the USDCNH buyers amid dicey markets.

The pair’s latest upside could also be linked to the US Dollar’s recovery moves and the Covid fears from China.

Furthermore, the recently released quarterly monetary policy statement from the People’s Bank of China (PBOC) also allows the USDCNH bulls to keep the reins.

Also read: PBOC: Will monitor and make appropriate responses to keep price level stable