USD/CHF leans bearish towards 0.9650 on mixed options market signals

USD/CHF pares weekly gains around 0.9655, mildly offered after failing to refresh the monthly peak the previous day.

That said, the one-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, paused a six-day uptrend with the latest 0.00 figures for Wednesday, per the data source Reuters.

It’s worth noting that the options market gauge still braces for the second weekly positive, in line with the USD/CHF prices, despite recent weakness in the numbers.

The options market bias could be attributed to the broad US dollar pullback ahead of second-tier US data and the all-important speech from Fed Chairman Jerome Powell at the Jackson Hole symposium, on Friday.

It should be observed that mixed US data and the market’s anxiety ahead of the key event seemed to have probed USD/CHF bulls of late.

On Wednesday, US Durable Goods Order for July dropped to 0.0% versus 0.6% expected and an upwardly revised 2.2% previous reading. However, Nondefense Capital Goods Orders ex Aircraft rose past 0.3% market consensus to 0.4%, versus 0.9% prior. Further, Pending Home Sales improved to -1.0% MoM in July versus -4.0% expected and -8.9% prior (revised down from -8.6%). On a yearly basis, the Pending Home Sales decreased by 19.9%, versus the previous contraction of 20.0%.

Looking forward, the second version of the US Q2 GDP will join the US Personal Consumption Expenditure (PCE) for the said period to decorate the calendar. However, major attention will be given to RBNZ Governor Orr’s speech at the Jackson Hole for fresh impulse.

Also read: USD/CHF Price Analysis: Clears the 50/100-DMAs on its way to 0.9700