Morgan Stanley have placed a limit.....>

DOLLAR-SWISS: Morgan Stanley have placed a limit order to sell USDCHF at 0.9940,

with a stop at 1.0065 and a target of 0.9400.

- In the note MS state that "with the USD rally nearing completion, we start to

position for USD weakness versus select currencies including CHF. We think that

CHF bearish sentiment has reached an extreme, and short positioning is also

becoming stretched. Indeed, CHF is the largest short position within the G10,

suggesting it could see a short squeeze higher as the USD weakens. Concerns

about the European integration project and uncertainty in Italy may also prompt

Swiss investors to increase their FX hedges on their EUR investments, which

would be CHF-supportive and lead EURCHF lower. USDCHF saw a significant rally in

the last three months as the wider USD LIBOR-OIS spread made this pair the best

carry trade within G10, but this could now reverse with the LIBOR-OIS spread

tightening. A risk to this trade is that the SNB intervenes in the market in

significant amounts to prevent CHF strength."