Credit Agricole Research discusses maintains a positive bias and long position in EUR/CHF*, while advising against selling EUR/USD around current levels.
"Easing political tensions coupled with rebounding growth momentum with the start of the next year should help crosses such as EUR/CHF to regain ground. The same should hold true as when it comes to EUR/USD too.
Even if yesterday’s Fed announcement seems to have fallen short of dovish expectations, it should still be taken as another step towards a more neutral stance on monetary policy and if only on the back of becoming more data dependent. This implies falling USD rate advantage in an environment where other central banks such as the ECB are on track to normalize monetary policy as planned," CACIB argues.
"In addition, still extreme short positioning is likely to keep upside risks towards the end of the year intact. As such we advise against selling the pair at the current levels," CACIB adds.
*Recorded in eFXplus Orders