CHF: Favoured currency to position for USD strength - Westpac
|Research Team at Westpac, suggests that the CHF remains their favoured currency to position for USD strength, as their model, technical and macro scores summing to an aggressive -8, a strong cue to buy USD/CHF on weakness.
Key Quotes
“We lift our buy level in USD/CHF to 0.9990, stop 0.9890.”
“Macro: Disappointing export data and recent CPI data risking a slide back towards deflation will increase the perception, repeatedly iterated by SNB members, that current NIRP could be increased will add to official support for a softer CHF.”
“Technical: Inability to push through 1.01 may increase the potential for retracements, but slippage has been remarkably contained. A spike below 1.0040 could trigger retracements towards 0.9900, but this should provide the opportunity to reposition long USD for a push toward 1.0250-60.”
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