The long weekend in the US could keep trading subdued today, however that doesn’t make it devoid of interest. EUR/CHF has been one of the quietest markets this year but yesterday burst into life with volumes spiking as price spiked higher. This suggests the market is taking on the SNB, but these long CHF positions could be vulnerable to a squeeze if USD/CHF closes at a new 2012 high. Weekly closes in oil and USD should be noted today for signs of a further deterioraton in global growth expectations.
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Barclays Capital