This via the folks at eFX.

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  • Morgan Stanley Research discusses CHF outlook and maintains a tactical bullish bias over the coming weeks.
  • "We remain bullish on CHF and long CHF/NOK. We think fundamental factors continue to point to further CHF strength as long as the SNB persists with its preference for a stronger currency to curb imported inflation. Euro area growth expectations - a key driver of EUR/CHF - continue to deteriorate as Russian gas flows are getting further reduced, and recessionary concerns are rising, pointing to inflows for safe-haven currencies like CHF," MS notes.
  • "Short positioning in EUR/CHF is again at stretched levels, which may again warrant some near-term consolidation. Over time though, we continue to see the cross moving lower to 0.95. USD/CHF should remain driven by the broader USD trend," MS adds.
eurchf 05 August 2022