Bank of America Global Research likes structural long USD/CHF exposure in 2021 via 6m call spread.
"We identify three key risks to the prevailing USD bearish view. 1- Cyclical weakness & risk aversion. 2- Inflation & potential rates shifts. 3- Positioning," BofA notes.
"While we are bearish USD as part of our base case, we believe it prudent to hedge this consensus view as part of an effective FX strategy. Long USD/CHF exposure through a lower-cost options structure with potentially high leverage provides investors with an effective hedge," BofA adds.