MNI: PBOC Net Drains CNY345.9 Bln via OMO Friday

MNI BRIEF: Japan Oct Core CPI Rises 2.3%, Services Rise

MNI BRIEF: Fed Should Explore Central Clearing At SRF-Hammack

MNI China Daily Summary: Thursday, November 21

MNI BRIEF: China To Enhance Support For Foreign Trade - MOFCOM

MNI: UK NOV GFK CONSUMER CONFIDENCE INDEX -18

MNI JAPAN OCT CORE CPI +2.3% Y/Y; SEPT +2.4%

MNI: FED BALANCE SHEET TOTAL ASSETS -$43B TO $6.924T IN WEEK

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

SWITZERLAND: CHF Remains on Front Foot Amid Carry Unwind Backdrop

SWITZERLAND
  • The narrowing of yield differentials in Japan and the US have been the primary driver of the sharp JPY rebound in recent weeks, exacerbated by the deterioration for global risk sentiment. While the JPY’s funding status and positioning have exacerbated this correction, the similarly low yielding Swiss Franc also continues to trade on the front foot, with EURCHF printing nine-year lows on Monday.
  • EURCHF traded as low as 0.9211 during yesterday’s severe risk aversion with notorious safe havens attracting strong early demand. While the pair had a solid bounce to around 0.9380, renewed weakness today saw the pair briefly slip back below 0.9300.
  • Yesterday’s low represented the weakest level since the removal of the floor back in January 2015. Short-term support remains scant until the reported lows from that day, shown on Bloomberg as 0.8517. Initial resistance is not seen until the June lows of 0.9478 and 0.9540, the 20-day EMA.
  • For USDCHF, the downside target for the move appears well defined at the December 2023 lows of 0.8333. Below here, the 76.4% retracement of the 2015-2016 range comes in at 0.8099 and could be a target should greenback weakness develop, and risk sentiment deteriorate further.
CEEMEASwitzerlandBulletGlobalForeign Exchange BulletsRegion

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.