Long EURCHF - 9/10 Conviction:
1. Having watched the 1.08 level closely post-brexit it certainly looks as if there is some FX intervention going on at the 1.08 handle - suspicions enforced even more as SNB President Jordan has said in the past that FX intervention is on the cards should CHF move even higher when we were around this level previously.
2. Ive been...
SNB President T. Jordan comment highlights:
- If Needed, Can Cut Rates Further - 50bps to 1.25% possible until negative rates turn less effective
- Big Concern Over Significantly Overvalued CHF in 2016 risk-off dominated year
- CHF 3m Libor prices 80% chance of a 25bps cut (-0.75 to -1.00%) within 3 months (was only 40% before brexit)
- Low bond yields not...
This could be a very profitable trade.
The way I see it is that the price is oversold, dropping to fundamental support.
Now, this is important, if the SNB anticipates larger QE by the ECB, they will drop the interest rate further into negative territory. This could be a huge event as the SNB believes the currency is already severely overvalued.
The SNB will...