CHF: Favoured currency to position for USD strength - Westpac

Sandeep Kanihama FXStreet Contributor

Research Team at Westpac, suggests that the CHF remains their favoured currency to position for USD strength, as their model, technical and macro scores summing to an aggressive -8, a strong cue to buy USD/CHF on weakness.

Key Quotes

“We lift our buy level in USD/CHF to 0.9990, stop 0.9890.”

“Macro: Disappointing export data and recent CPI data risking a slide back towards deflation will increase the perception, repeatedly iterated by SNB members, that current NIRP could be increased will add to official support for a softer CHF.”

“Technical: Inability to push through 1.01 may increase the potential for retracements, but slippage has been remarkably contained. A spike below 1.0040 could trigger retracements towards 0.9900, but this should provide the opportunity to reposition long USD for a push toward 1.0250-60.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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