Forex Flash: Swiss Franc next leg to go; watch EUR/CHF 1.2250 barrier - Societe Generale
Forex pairs in this Article »
EUR/CHF
FXstreet.com (Barcelona) - The Swiss Franc should be the next currency to suffer from the risk appetite environment, says Sebastien Galy, a senior currency strategist at Societe Generale.
The arguments behind Mr. Galy prediction is "CHF extreme valuations" he said, adding that this "should offer a solid strategic short for the market and the more so as the JPY weakens reducing its valuation argument."
Mr. Galy adds: "Furthermore with Euphoria at retail level, we may finally start to see Swiss investors reallocate outside of Switzerland, and as the Swiss weakens, the value for foreign institutions to hold the CHF as safe haven will weaken. The next level of barriers is said to be around 1.2250..."
The arguments behind Mr. Galy prediction is "CHF extreme valuations" he said, adding that this "should offer a solid strategic short for the market and the more so as the JPY weakens reducing its valuation argument."
Mr. Galy adds: "Furthermore with Euphoria at retail level, we may finally start to see Swiss investors reallocate outside of Switzerland, and as the Swiss weakens, the value for foreign institutions to hold the CHF as safe haven will weaken. The next level of barriers is said to be around 1.2250..."
Free Annual Reports
