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Morgan Stanley entered a short.........>

DOLLAR-SWISS
DOLLAR-SWISS: Morgan Stanley entered a short USD/CHF trade at the NY close
Thursday, with a target of CHF0.9200 and a stop at CHF1.0040.
- MS reason that "CHF is likely to stay supported as Brexit concerns continue
and European currencies appreciate more broadly against USD. Tightening global
liquidity conditions seem likely to continue, which should weaken the US asset
outlook, rendering the US less attractive to foreign investors and leading to
capital flows back out of the US. Investor sentiment in CHF remains moderately
bearish, suggesting further room for CHF to correct as positioning squares. A
risk to the trade is that US growth outperforms rest of the world growth
materially, leading to asset inflows into the US, keeping USD supported."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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