Free Trial

Also worth flagging that Morgan........>

DOLLAR-SWISS
DOLLAR-SWISS: Also worth flagging that Morgan Stanley entered a short USD/CHF
position at CHF0.9840 on Thursday, with a target of CHF0.9400 and a stop at
CHF0.9980.
- Morgan Stanley noted "low-yielding, countercyclical currencies like CHF should
continue to outperform amid slowing global growth, trade tensions, rising market
volatility, and falling global bond yields. Analysis of historical behavior
suggests the SNB may not intervene aggressively to check CHF appreciation until
EUR/CHF reaches CHF1.0800, below current levels, while EUR/USD may rise further
as EUR-funded carry trades are further unwound. These two factors suggest
USD/CHF will trade lower. Meanwhile, falling US yields should continue to keep
the USD under pressure. The key risk to the trade is that the SNB begins to
aggressively intervene to actively weaken the CHF, keeping USD/CHF trading
higher."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.