(This is an excerpt from an article I originally published on Seeking Alpha on June 11, 2012. Click here to read the entire piece.)
As global financial markets seem set to rally in a reflex “risk on” reaction to the bailout of Spain’s banks, one small corner of the financial universe remains notably somber: the euro/Swiss franc currency pair (EUR/CHF). {snip}
Whether daily…
…or hourly…
Source: FreeStockCharts.com
…the Swiss franc continues to act as a fat, heavy weight pressing EUR/CHF almost as low as it is allowed to go (the 1.20 floor established by the Swiss National Bank).
I am expecting the franc to weaken against the euro the moment the market is convinced the eurozone crisis is on its way to resolution. {snip}
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on June 11, 2012. Click here to read the entire piece.)
Full disclosure: long EUR/CHF, short EUR/GBP, short EUR/JPY, long FXF