USD/CHF risk reversal portrays third week of options market indecision

One-month risk reversal (RR) of USD/CHF, a gauge of calls to puts, prints 0.000 readings for the third week, per the latest data from Reuters. The figures suggest that the pair traders are indifferent and seek clarity.

The same doesn’t match the USD/CHF price moves as major currency pair is mildly bid, up for the fourth week in a row, by the press time of early Friday.

That said, the RR has one more day of this week left to roil the scenario and that could be right if Fed Chair Jerome Powell uses his annual speech at the Jackson Hole Symposium to weigh on the greenback.

It should be noted that the latest Fedspeak has been hawkish, renewing the tapering concerns and challenging Powell. Also confusing the Swiss currency (CHF) traders could be the mixed risk catalysts from China and relating to the covid.

Read: Asian Stock Market: China defends bulls ahead of Fed Chair Powell’s power-play