Risk-reward attractive for selling CHF against the USD and EUR – Citi

Citi has a close eye on the Swiss franc

Citi discusses the CHF outlook and flags a scope for long USD/CHF and long EUR/CHF to outperform over the coming weeks on the back of the following 4 reasons.

(i) the SNB will continue to intervene given current levels of EURCHF and USDCHF;

(ii) risk aversion on a US-Iran deescalation should diminish;

(iii) troughing data in Europe will be short-term negative CHF; and

(iv) technical levels and price action make risk/reward attractive,” Citi notes.