So why won’t the CHF re-align just like JPY and AUD

I’m afraid that I don’t know the answer but I simply cannot understand why the CHF hasn’t undergone the same sell-off from vastly over-bought levels just like has happened in other currencies like the Yen and the AUD. I’m not taking the silly spike towards 70.00 in USD/CHF into account, as that was an anomaly, but surely we should see the EUR/CHF and the USD/CHF back at slightly higher levels? If anyone has any insight, please share!

  1. I’ve seen here and there some flow info Swiss funds are getting out of USD/CHF longs and again this morning (probably causing that quick sub-9400 drop).

    Now, the question is what do those Swiss funds know that we don’t? 😛

    Or just position adjustments ahead of NFP data?

  2. Also would like to know why … Currently long at 2500 (long term trade) but … strange.
    2300 will probably be taken today, will probably add a bit.
    Still bullish bias on the long term.

  3. If I am lot mistaken, last month, heard a huge huge EUR/CHF put purchase, below 1.2000. Maybe this guy know what he is doing. Someone said the up coming German election may cast further pressure to Southern Europe countries.

  4. Correlation with Yen and share indicies is a theory I keep hearing thrown around. Shares are falling (most significantly Japanese indicies), so pulling down yen pairs, and Swissy pairs just go along for the ride. Another I heard (I think from Kyle) was that a sustained drop in the S&P would lead to a reversal of many other currency trends, even if it unwinds some dollar positive trends against ordinarily risk-correlated currencies. From memory, he thought the risk-on/risk-off mantra would eventually return, but not until after a general shake-out. so any trend in progress if/when shares dive is at risk of unwinding, irrespective of prevailing direction.

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