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Update on FX trading recommendations

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Stop taken in short EUR/CHF − raise stop in long GBP/CAD

Fri, Nov 21 2008, 10:02 GMT
by John Hydeskov

Danske Bank A/S


- We recommended three FX strategies earlier this week, see FX Strategy: Go short EUR/USD, EUR/CHF - long GBP/CAD, 18 November

- The stop has been met in our short EUR/CHF recommendation and we are taking a loss of 1.32% (including carry).

- The CHF weakened after the SNB's surprising 100bp rate cut but it was not before early this morning the pair saw a short-lived spike, triggering our stop.

- We still believe that EUR/CHF will adjust downwards but prefer to stay on the sidelines as long as the ECB stubbornly refuses to join the game on monetary stimulus.

- We are lifting the stop to entry level in our long GBP/CAD recommendation as this position now is well in the money. The CAD has been sold off as the oil price has dropped to USD50/bbl, putting exports and the profitability of Canadian oil extraction under pressure.

Published on  Fri, Nov 21 2008, 10:10 GMT


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http://www.danskebank.com/ | danskeresearch@danskebank.com

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