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4 Jun 2013
Flash: EUR/CHF previous upside untenable – UBS
FXstreet.com (Barcelona) - In light of recent pricing action surrounding the cross, it’s worth mentioning that corporates and private clients are holding the biggest long-CHF positions.
Moreover, “We suspect that this community were surprised at the move beyond 1.2600 and SNB Chairman Thomas Jordan's musings on changing the FX target level only made sticking to franc-overweighting more untenable.” notes Research Analyst Gareth Berry at UBS.
Although the EUR/CHF was broadly flat on the week in net flow across all client categories, buying amongst wealth management clients was the strongest on a weekly basis since 2008, and overall the third largest week on record. “The EUR/CHF didn't even perform that well through the week, but the flow in question was concentrated on Monday and Friday - strongly suggesting that such clients were trying to buy the dip.” Berry adds.
Moreover, “We suspect that this community were surprised at the move beyond 1.2600 and SNB Chairman Thomas Jordan's musings on changing the FX target level only made sticking to franc-overweighting more untenable.” notes Research Analyst Gareth Berry at UBS.
Although the EUR/CHF was broadly flat on the week in net flow across all client categories, buying amongst wealth management clients was the strongest on a weekly basis since 2008, and overall the third largest week on record. “The EUR/CHF didn't even perform that well through the week, but the flow in question was concentrated on Monday and Friday - strongly suggesting that such clients were trying to buy the dip.” Berry adds.