Forex Flash: Swiss Franc may out perform the Euro – BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman has taken a look at the Swiss Franc and believes that it could outperform the Euro in the near term.
He notes that news that Credit Suisse was going to charge large clients for holding substantial franc deposits spooked the market. However, at least two US Banks and another large Swiss Bank had engaged in a similar practice previously without eliciting such a dramatic response.
Chandler comments that some suspect that the SNB will make a similar move when it meets on December 13th but that is not his view. He highlights that the Euro rallied about 1.1% in reaction, but as more participants came along to his viewpoint, the Euro surrendered 0.75%.
USD bounced from about 0.9240 to close to 0.9380, but the close near 0.9345 is more neutral. He is looking for the Franc to recover more aground against the Euro, "and that means for those who are inclined to play the dollar from the short side, may be better off in the franc, though it does not have nearly the same liquidity."
He notes that news that Credit Suisse was going to charge large clients for holding substantial franc deposits spooked the market. However, at least two US Banks and another large Swiss Bank had engaged in a similar practice previously without eliciting such a dramatic response.
Chandler comments that some suspect that the SNB will make a similar move when it meets on December 13th but that is not his view. He highlights that the Euro rallied about 1.1% in reaction, but as more participants came along to his viewpoint, the Euro surrendered 0.75%.
USD bounced from about 0.9240 to close to 0.9380, but the close near 0.9345 is more neutral. He is looking for the Franc to recover more aground against the Euro, "and that means for those who are inclined to play the dollar from the short side, may be better off in the franc, though it does not have nearly the same liquidity."
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