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Citi analysts like EUR/CHF

By   || September 2, 2010 at 18:17 GMT
|| 5 comments || Add comment

Citibank analysts (not the tech guys) say like EUR/CHF, noting the slide is overextended and that hedge funds have too large a short position. Yield spreads between Germany and the likes of Greece and Spain have narrowed a bit of late, lessening the safe-haven play. The like a small position, about 5% of a portfolio, they say…

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5 Responses to “Citi analysts like EUR/CHF”

  1. jack on September 2nd, 2010 18:32 GMT

    So you say, and the chf is the only one to make noticeable move this afternoon. Eurchf back up 1.3000 and usdchf above 1.0150… Interesting, are they short covering?

  2. saferanger on September 2nd, 2010 18:34 GMT

    1.35 here we come : ) In absolute terms I think this pair is fairly cheap (in ppp that is)…having spoken to an analyst yesterday pp-fair-value is at least 1.37-1.40…that makes for an interesting bet, once we have bottomed out…

  3. Jamie Coleman on September 2nd, 2010 18:40 GMT

    PPP (pruchasing power parity) can stay out of whack for decades, hell, forever…careful with that…

  4. think on September 2nd, 2010 18:47 GMT
  5. saferanger on September 2nd, 2010 19:17 GMT

    Thx Jamie…I’ll bear that in mind! : )

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