USD/CHF drops to fresh one-week low under 0.8900 amid mixed options market signals

USD/CHF takes offers to refresh a seven-day low around 0.8870 during early Tuesday in Asia. In doing so, the Swiss currency pair cheers broad US Dollar weakness as options market bears keep the reins.

While portraying the mood at the options market, the USD/CHF one-month risk reversal (RR), a spread between the call options and the put options, brace for the biggest monthly loss since November 2022. That said, the monthly RR drops for the second time in a row with the latest print being -0.435.

However, the weekly and daily RR figures are less pessimistic as the weekly numbers stabilize near 0.000 after declining in the last three consecutive weeks whereas the daily RR marks the 0.000 figure for the second time in a row. It’s worth noting that the daily options market signal snapped a 10-day downtrend on Thursday before portraying the market’s late indecision.

Apart from the options market bias and the broad US Dollar weakness, the USD/CHF technical details are also bearish and suggest the quote’s further downside.

Also read: USD/CHF Price  Analysis: Tumbles further below 0.8900, with sellers eyeing the YTD low