EUR/CHF: Looks a lot like EUR/JPY a few weeks back
Remember that EUR/JPY was nearly 20 big figures lower a few weeks ago and it’s really only been a change in sentiment brought on by verbal intervention which has caused the rise. The CHF is capped by actual intervention and with real money flows now reversing out of CHF and into EUR, this pair has plenty of scope higher in my very biased opinion.
I think most of the rise will eventually happen through the USD/CHF leg, ie it will rise to 1.00 and above while the EUR/USD will edge higher towards the upper end of its range perhaps even seeing 1.38/1.40. Obviously if this happens, it will give FX traders some great opportunities to trade the swings.
I’ll be away for most of this morning and early afternoon. I’m meeting with one of the market’s biggest allocators to emerging traders and hopefully they will throw plenty of cash in the direction of our traders! Chat later++