Amundi Asset Management sells franc
Europe's largest asset manager has halted and reversed a bet on Swiss franc strength.
Noting that EUR/CHF hit 1.10 this week, Amundi's global head of FX said the risks are now to the upside.
"The franc is already a very expensive currency given how low its interest rate is, and I don't think the SNB is happy with the franc at these levels," Andreas Koenig told Bloomberg "The SNB still has power to do more on the currency if it wants to."
He said the firm had closed and reversed a tactical long position in the franc and believes the SNB will become more active in jawboning franc appreciation. If that doesn't work, they could see a surprise move by the SNB if the pair falls to parity.
