EUR/CHF: What’s Going On With CHF? What’s The Trade? –


The euro is rising against the dollar but also against other peers. EUR/CHF is on the move and even getting close to the old floor line of 1.20.

Here is their view, courtesy of eFXnews:

Bank of America Merrill Lynch FX Strategy Research notes that summer 2017 has so far been dominated by the sharp depreciation in the Swiss Franc.

“We would classify this as a “surprise” because the scale of the move over the past month has been unprecedented since the SNB abandoned the EUR/CHF peg in January 2015 and because it appears to have lacked an immediate catalyst. 

….Now that the regional political risk premium has abated, CHF is reverting to its traditional role of a counter-cyclical funding currency, which in our view should make long EUR/CHF a cleaner trade on policy divergence and relative valuationHowever,the speed of the recent move gives us reason to expect consolidation ahead of 1.15 in EUR/CHF.

“Given we think the SNB will not deviate from its current strategy, this should limit any bounces in CHF and our bias would therefore be as buyers of EUR/CHF on dips for the time being,” BofAML advises.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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