The US has labeled Switzerland as a “currency manipulator” and triggered volatility in the Swiss franc. What’s next?
Here is their view, courtesy of eFXdata:
Citi discusses the CHF outlook and flags a scope for long USD/CHF and long EUR/CHF to outperform over the coming weeks on the back of the following 4 reasons.
“(i) the SNB will continue to intervene given current levels of EURCHF and USDCHF;
(ii) risk aversion on a US-Iran de-escalation should diminish;
(iii) troughing data in Europe will be short-term negative CHF; and
(iv) technical levels and price action make risk/reward attractive,” Citi notes.
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