ANZ: Recommends selling EUR/CHF on a spike towards 0.99

<p>ANZ is suggesting a trading strategy on the EUR/CHF currency pair based on the latest policy stance of the Swiss National Bank (SNB).</p><p>Key Points:</p><ol><li><p>SNB’s New Approach: ANZ highlights that the Swiss National Bank (SNB) revealed in its June meeting that it is adopting a “sell foreign currency” approach as part of its foreign exchange intervention toolkit. This is aimed at keeping inflation low in Switzerland.</p></li><li><p>Implications for EUR/CHF: The bank implies that SNB will be closely monitoring the EUR/CHF pair, with a focus on keeping the pair weaker. A weaker EUR/CHF is considered key in controlling inflation that could be imported from Eurozone economies.</p></li><li><p>Trading Strategy: ANZ suggests that traders should look for opportunities to sell EUR/CHF when it approaches parity (1.00). Specifically, they recommend taking short positions if the currency pair spikes towards 0.99.</p></li></ol><p>Summary:</p><p>ANZ recommends a trading strategy on the EUR/CHF currency pair in light of the Swiss National Bank’s policy to sell foreign currency as a measure to control inflation. ANZ suggests that traders should consider selling EUR/CHF on any spike towards 0.99, as the SNB is likely to be monitoring the pair for signs of strength and may take action to keep EUR/CHF weaker to manage imported inflation from the Eurozone.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1688671228442000&amp;usg=AOvVaw2HpJNeDJs63cXYEIxoTeiG">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1688671228442000&amp;usg=AOvVaw2HpJNeDJs63cXYEIxoTeiG">Get it here</a>.

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This article was written by Adam Button at www.forexlive.com.