EURCHF Shorts Unstuck?
EURCHF has not had the best of starts to the week as investors are opting for an abundance of caution amid rising volatility. Shifting correlations is one big driver of choppy markets at present, and though the dollar is having another identity crisis, no-one is disputing EURCHF as a barometer for risk-on/risk-off. Nonetheless, as the US seems to be the main source of uncertainty and there’s not much in the Eurozone to be concerned or excited about, we don’t foresee any FX headaches for the SNB in the immediate future. In addition, if last week’s flow figures are any indication of things to come, there may be one community holding entrenched EURCHF shorts that may be about to buy the most recent dip.
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