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Thomson Reuters
Oct 08 - 06:12 AM
USD/CHF - COMMENT-Specs Miss The Boat, So USD/CHF May Hit Multi-Year High
First appeared on eFXplus on Oct 08 - 03:55 AM

Speculators have pared bets the Swiss franc's value will drop just as the currency is falling and the lack of bets against it are likely to result in a deeper and sustainable decline.
Traders have slashed bets on a USD/CHF rally by over two-thirds to $1.7 billion.
USD/CHF jumped from 0.9544 on Sept.
21 to 0.9955 on Oct.
5 during this period of long liquidation.
In contrast, USD/JPY longs have doubled from $6 billion in mid-September to $12.5 billion today .
USD/JPY opened at 112.50 on Sept.
1 and reached 114.55 on Oct.
4.
Both moves are being driven by the big rise in U.S. yields.
Both currencies are undermined by ultra-easy monetary policy.
Both currencies are perceived safe havens, though only the Swiss central bank has pledged to intervene to curb strength.
USD/CHF broke and closed bullishly above the daily ichimoku cloud and 100-DMA last week.
Without spec bets to slow it down, the rally could test major highs near 1.0350 that have held since 2010.

USDCHF yearly chart Click here

USDCHF bets Click here

USDCHF Click here

Source:
Thomson Reuters IFR Markets

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