The highly anticipated meeting of the ECB means a lot for the euro, but also for the Swiss franc.
Here are Barclays’ traders of the week, with clear directions:
Here is their view, courtesy of eFXnews:
Currency investors should consider selling EUR/USD and buying USD/CHF this week, advises Barclays Capital in its weekly FX pick to clients. The trades are macro-technical driven and are in line with Barclays’ positions in its strategic portfolio.
On the macro-front, Barclays’ rationale is as follows:
“We expect the ECB to deliver a stimulatory policy package including a time extension of QE and a 10bp deposit rate cut. Given how much is already priced in, we see a risk that the ECB surprises market expectations to the upside; therefore, we remain short EURUSD.
Moreover, given the pressure that additional ECB easing will add on the SNB, we recommend staying long USDCHF spot,” Barclays advises.
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