Forex Investment and Currency Trading

CHF has gained handsomely on the worries over global growth, tightening credit conditions and the steady deterioration in risk appetite. FX models say relative to the move in risk sentiment (captured by option vol, credit spreads and equities), EUR/CHF is now broadly fairly valued.
Evidence of global economic recoupling will see the CHF appreciate further against the USD and other major currencies (the JPY likely the main exception). But European contagion will happen only slowly. Euroland has been hit by a supply-side shock that burns more slowly than the demand shock that’s hit the US economy. Transmission from slower US growth [...]

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