Comments from Morgan Stanley on the Swissy, analysts remain bearish on it for the weeks ahead.
- “We maintain our bearish stance on CHF despite the recent strength and remain long USD/CHF via 1y risk reversals. The market is now very short the CHF, especially via options, which contributed to the CHF strengthening sharply this week as global growth concerns intensified. Our expectation for higher US real yields and a weaker EUR/USD means USD/CHF risks remain skewed to the upside”
- “In EUR/CHF, the pair has now given up all of its gains since yields started moving higher in late February. 1.08 is the next big support level we are watching”
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