DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Morgan Stanley went short CHF/JPY at the NY...>

FOREX
FOREX: Morgan Stanley went short CHF/JPY at the NY close on Thursday with a
target of JPY109.50 and a stop at JPY118.10.
- MS "think it is an attractive time to re-enter our long-term, structural
CHF/JPY short. With US yields reaching new cycle highs, the volatility in EU
assets is gradually evolving into a potential volatility event in US/global
assets, suggesting higher repatriation flow potential into the JPY vs. CHF as
Japan's foreign portfolio investments are largely in the US while Switzerland's
are mainly in the EMU. Differences in hedging activities in foreign investments
suggest JPY should outperform CHF too. This suggests that a risk-off environment
incentivizing repatriation may have a more JPY-positive impact than a CHF
positive one. CHF/JPY shorts also looks attractive from a technical perspective
as they have retraced from the top end of the trading range held since '17.
Increased concerns about Switzerland's relations with the EU could also weigh on
CHF. A key risk to this trade is that risk sentiment remains supported, keeping
JPY weak and CHF/JPY elevated."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Energy BulletsCommodities

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.