Clients of Barclays Forex Desk still short EUR/CHF...

Discussion in 'Wall St. News' started by ASusilovic, Sep 6, 2011.

  1. If so, this policy will have to change at some point, and the pressures are not going to be to the topside of EUR/CHF if that’s the case. It is possible that markets will backwards induct to question the EUR/CHF floor now. Anchors in quicksand can lead to shipwrecks. We see little upside to EUR/CHF in the short run, as Eurozone debt issues are unlikely to be resolved soon and could easily deteriorate further. And with little carry to pay, the cost of keeping short EUR/CHF positions is relatively low. This is consistent with the positions we are seeing from some clients who are short EUR/CHF: risk/reward still looks attractive if one considers that the success of this measure partly hinges on the Eurozone’s own success....

    http://ftalphaville.ft.com/blog/2011/09/06/670301/snb-euroquake-the-analysts-react-part-two/

    Good to know that there are still "smart" clients out there betting against the SNB arsenal... :cool: