Forex Flash: Longer-term implications for the EUR/CHF – UBS
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EUR/CHF
FXstreet.com (Barcelona) - Two key messages emerge when we analyze the behavior of international equity investors: first, central bank activism is being rewarded as we have seen brisk foreign demand for US and Japanese stocks over our books, while secondly, Swiss investors are starting to put money to work globally, with longer-term implications for the EURCHF.
According to Research Analyst Gareth Berry at UBS, "We see that foreign inflows to US stocks returned in September 2012 and were still continuing as of last week. This is quite a shift in behavior given the relative lack of conviction over the past four years. It is no coincidence that the Fed's QE3 program began at the same time - the tactic of incentivizing investors to hold riskier assets appears to be working."
According to Research Analyst Gareth Berry at UBS, "We see that foreign inflows to US stocks returned in September 2012 and were still continuing as of last week. This is quite a shift in behavior given the relative lack of conviction over the past four years. It is no coincidence that the Fed's QE3 program began at the same time - the tactic of incentivizing investors to hold riskier assets appears to be working."
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