“Eff off Ryan with your short swiss recco’s” I hear you cry
Carnage always brings with it opportunity. Take EUR/CHF out of the equation and there’s a question to be asked of other swiss pairs. Consider that they were free floating all this time and although had joined the original bounce when the floor was put in place, had been adjusting to the fundamentals of today. There was no floor in any other swiss pair.
This market is going to take a few days to settle down and find a comfortable level. I’m sure we won’t see this mornings pre-SNB levels anytime soon but when we take the fundamental picture into consideration has the story changed for the US, the UK, Japan or other countries?
It gives some scope to the long trade in that unless the fundamentals have changed materially in the last few hours then the downside in US, GBP etc should be limited to the reaction in the majors.
This isn’t a suggestion to go jumping in with two feet but we’ve had the reaction, and over reaction, and when things settle the market will start to ask what exactly the relative level should be. At the moment no one has a sodding clue what the true level for swiss pairs are and they’ll fall back to the underlying picture for a clue.
What’s the trade for Swiss pairs from here?
Buy 13 votes
Sell 3 votes
Wait and see 18 votes
Total 34 votes
