EUR/CHF: Hedge funds looking to increase long bets en-route to 1.35
I had a long chat today with a big hedge fund and they are of the same opinion as me, that we will soon see a sharp weakening in the CHF. He’s not 100% sure what will drive the big asset managers to start hedging or selling their Swiss assets, but he thinks the time is coming very soon. He says that many other like hedge funds are thinking the same way and are preferring to play the strategy through EUR/CHF rather than USD/CHF.
Prime brokers were reporting bids in EUR/CHF starting at 1.2500/10 so maybe they are starting to chase this one higher?