Options Flash Caution on Swiss Franc as SNB Steps Up Rhetoric

The Swiss franc’s rally may be running out of steam, history and charts suggest, after its latest burst of strength ran into a familiar obstacle: the Swiss National Bank.

The currency briefly pushed toward 0.90 versus the euro for the first time since 2015 on Monday, before reversing course to end the session weaker, around 0.9110 per euro. Options markets echoed the loss of momentum as risk reversals — a gauge of demand for bullish versus bearish protection — saw one of the sharpest intraday swings in history, exceeded in force by only 2% of past moves.