Weekly pick from Mitsubishi UFG
Consider selling USD/CHF this week, MUFG Research suggests.
The pair is trading at 0.8988 and they recommend selling with a target at 0.8650 and a stop at 0.9250.
"We are recommending a short USD/CHF trade idea to reflect our expectations that the USD is likely to weaken further following the US election result," they noted.
"USD/CHF is currently testing key support at the 0.9000-level where the lows from late August/early September are located. If those levels are broken, the USD sell-off could accelerate... It could open the door toe a move back towards the 0.8500-level for USD/CHF."
Also important to note is that the US Treasury could release its FX manipulation report any time (it's overdue but was delayed until after the election) and some speculate Switzerland could be named a manipulator.
