Early on Tuesday Credit Agricole..............>

FOREX: Early on Tuesday Credit Agricole recommended buying GBPCHF at 1.3150 with

a stop-loss at 1.2780 and a target of 1.3850.

- Credit Agricole noted that "the GBP has suffered for most of the past few

weeks, largely on the back of weaker risk sentiment driven by political

uncertainty in Italy. Weaker domestic data, to the detriment of Bank of England

monetary-policy expectations, has also weighed on the currency. From current

levels, we believe GBP downside is likely to prove limited. This is not only

because of limited scope for central-bank rate expectations to fall further, but

also due to the view that the bar for positive surprises from the Brexit

negotiations seems low. In addition, speculative GBP positioning is now back to

balanced territory. Hence, position-squaring-related downside risk is low from

now on. All of the above stands in contrast to the CHF. Even if conditions were

to become more unstable again, we believe the SNB's aggressive policy mix of

negative rates and currency intervention is likely to prevent the CHF from

breaking considerably above its recent highs."