Forex Flash: Long-running EUR/CHF uptrend unlikely - HSBC

HSBC research team has published their view on the Swiss Franc, in which concerns about sustainability in the EUR/CHF rally are highlighted, saying that "the risk-reward of being long is quite different at 1.2500 than at 1.2050, thus should risk appetite falter, there is scope for some fresh CHF strength before the SNB needs to step back into the market with FX intervention."

HSBC adds: "It is also not yet clear the global environment has improved sufficiently to encourage Swiss banks and corporates to invest aggressively once again overseas. The mistake would be to assume that this merely heralds the start of a long-running uptrend. In fact, we face quite the reverse. The rally in EUR-CHF merely opens the door for a fresh drop should conditions warrant it."