Here we are remaining with our long bias, a view that has been with us since 2018.
=> Fundamentally, the SNB increasing in deposits suggests that the SNB have likely been keeping the EURCHF supported whilst volatility was on the move. President Jordan notably mentioned that the SNB is growing more concerned with market vol and the impact it is having on the CHF.
=> Here we can see the divergence implied from the options market and would suggest that EURCHF has room to correct higher.
Those following our ideas already know we see the EURUSD breaking down and this will increase European volatility but we don't see this being enough to put upward pressure on CHF.
I would also encourage you to check the USDCHF idea attached for a more detailed technical breakdown on CHF.
Thanks and best of luck.
=> Fundamentally, the SNB increasing in deposits suggests that the SNB have likely been keeping the EURCHF supported whilst volatility was on the move. President Jordan notably mentioned that the SNB is growing more concerned with market vol and the impact it is having on the CHF.
=> Here we can see the divergence implied from the options market and would suggest that EURCHF has room to correct higher.
Those following our ideas already know we see the EURUSD breaking down and this will increase European volatility but we don't see this being enough to put upward pressure on CHF.
I would also encourage you to check the USDCHF idea attached for a more detailed technical breakdown on CHF.
Thanks and best of luck.
