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Bloomberg Forecasters Agree with my EUR/CHF position!
By Sean Hyman | July 20, 2009
Today I just wanted to share a piece of a Bloomberg.com article with you that backs up my view in “selling francs” along with the central bank when you buy the EUR/CHF pair.
Here’s what they had to say about it:
July 20 (Bloomberg) — Switzerland’s central bankers are breaking the will of foreign-exchange traders with their first solo currency-market interventions since 1992. Less than a month after betting the Swiss National Bank’s franc sales would fail to halt its rise, investors are the least bullish since 2007, options prices show. This year’s five most- accurate franc forecasters in Bloomberg surveys see the currency trading between 1.50 and 1.55 per euro by Dec. 31, the range it has been in since after the bank started intervening March 12. “The SNB has won its battles, and they’ve given no indication that they are ready to end this policy,” said Jessica Hoversen, an analyst in Chicago for futures broker MF Global Ltd. She advises buying euros and selling the franc when it approaches the 200-day moving average. The currency traded at 1.5196 per euro as of 11:16 a.m. in London; the 200-day average was 1.5104. By holding back the franc, policy makers led by Chairman Jean-Pierre Roth, 63, are trying to prevent deflation from worsening the steepest recession since 1992 and restore investor confidence.
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Sean Hymanwww.forextradingblog.com
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