CHF: Positioning Closer To Balanced Territory; Stabilization Ahead – Credit Agricole

0

What is the outlook for CHF in the near-term?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research discusses CHF outlook and sees a scope for a stabilizing phase in the near-term.

With speculative positioning now closer to balanced territory, there is now less room for position squaring-related downside from here. While we stay bearish on the currency, downside from here will prove more gradual. This makes sense, as fresh selling interest may be needed as for instance driven by more progress on the Covid-19 front and subsequently further rising risk appetite,” CACIB notes.

“When it comes to monetary policy, no change is expected anytime soon as confirmed by the SNB last week,” CACIB adds.

For lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.