Balance still tilted in its favor; staying short EUR/CHF for 0.9450 – Credit Agricole | Forexlive
Credit Agricole CIB Research maintains a bullish bias on CHF, expressing this view via a short exposure in EUR/CHF targeting a move owards 0.9450.
“The CHF is holding onto this month’s gains. Of special note, USD/CHF
has tentatively reached fresh seven-month lows sub-0.94, while EUR/CHF
has steadied .98. The fact that Switzerland has not followed in the
footsteps of the Eurozone and the steep deterioration in its trade
balance to a large deficit should still act as a key prop in the CHF
long-term valuation,” CACIB notes.
“While it remains to be seen whether the turnaround is more structural than just cyclical for the Eurozone, Switzerland’s
superior fundamentals could in the meantime make a more compelling case
for the CHF over the EUR, as we remain short EUR/CHF in our
discretionary portfolio,” CACIB adds.
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