Short EUR/CHF – Deutsche Bank

Oliver Harvey, Macro strategist at Deutsche Bank, suggests to go short on EUR/CHF cross as their preferred G10 trade idea of the week.

Key Quotes

“Target 1.02, entry 1.0730, stop 1.10”

“Monday’s sight deposit data show another round of intervention last week from the SNB, with deposits rising by nearly CHF 2bn. We think the prospect for continued indefinite intervention is slim, however, given increasing risks to the public finances from the balance sheet rising nearly twice as high as before the EUR/CHF floor break in January 2015 and annual returns on the balance sheet well over 10% of Swiss national debt. Now that the SNB have paid out last year’s profits to the cantons, watch this space for a move lower in EUR/CHF.”