- No immediate inflation risk.
- Deflation damage to the economy can be limited
- The peg remains firm policy
- Expects Franc to keep weakening
EUR/CHF jumping from 1.2300 to highs of 1.2347. Crosses following suit.
We may be getting a good opportunity to fade this move. especially in GBP/CHF. There’s nothing coming out that is a break from the norm. With cable still under pressure a sneaky little short in the cross may be good value. We could possibly have some resistance/option selling up at 1.2350 which may be capping this move. I have nothing concrete on that at this moment.
More Jordan:
- Reserve diversification strategy still in place
- No currency war. Central bank policy can be used legitimately for domestic reasons
- Swiss GDP seen at 1-1.5% 2013-15
Did anybody get on board the fade?
