Swiss Franc, The Big Long At Risk
The Swiss franc has been a major beneficiary of safe-haven flows since 2007. As UBS data below shows, investors across all major segments remain short EURCHF and corporates and private clients remain short USDCHF. But the market’s big long in the franc is at risk. Yesterday USDCHF made new highs for 2013 above 0.9660 and EURCHF is nearing this year’s high around 1.2570. The franc is likely to remain under pressure over the next few months particularly against the dollar. First, demand for safe haven assets is waning as central banks keep loosening monetary policy to revive economic growth. Investors are buying equities – the S&P 500 made a new all time high overnight above 1650 and the Nikkei reached 15,000 this morning for the first time since 2008 – while shunning bonds and other traditional safe havens.
Click here to read the full report: UBS