Morgan Stanley entered a short EUR/CHF...>

EURO-SWISS: Morgan Stanley entered a short EUR/CHF position at the NY close on

Thursday with a stop at CHF1.1660, with a target target of CHF1.1200.

- Morgan Stanley "maintain a bullish CHF view, though we pivot our USD/CHF short

to a EUR/CHF short in light of our expectation for a rising USD. CHF stands to

gain in an environment of declining liquidity, waning risk sentiment, and

ongoing uncertainty over the European political situation. Nearly half of Swiss

foreign assets are held in Europe, suggesting that political risk would increase

the incentive for Swiss investors to hedge their exposures. Positioning in CHF

remains short (the shortest in the G10), suggesting further room to rally as

risk sentiment weakens further. The key risk to the trade is that the SNB

intervenes in the market to prevent CHF strength."