EUR/CHF Evaluation and Speaking Factors
Swiss Franc Advantages from Protected Haven FlowsSpeculators Turning Bullish on CHF Regardless of SNB Intervention
Swiss Franc Advantages from Protected Haven Flows
The Swiss Franc trades at a recent 2-year excessive towards the Euro with EUR/CHF hovering round 1.0830 as safe-haven flows proceed to dominate. The rising risk of a no-deal Brexit, alongside the little progress made on the commerce battle entrance between the US and China has seen the safe-haven Swiss Franc profit. That stated, with the ECB trying to unveil a brand new QE package deal on the September assembly, dangers stay tilted to the draw back for EUR/CHF with give attention to a transfer in direction of the 1.05-1.06 space.
Speculators Turning Bullish on CHF Regardless of SNB Intervention
The newest CFTC report confirmed that speculators are starting to show bullish on the Swiss Franc with outright longs doubling to 14,235 contracts from 7,925 contracts. Consequently, CHF internet shorts are on the lowest degree for the reason that back-end of 2017, which in flip highlights that speculators are seemingly testing the nerve of the SNB who’ve continued to intervene in stemming the appreciation in CHF for the reason that 1.10 break.
EUR/CHF Worth Chart: Weekly Time Body (Jan 16 – Sep 19)
— Written by Justin McQueen, Market Analyst
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