In a research note by analysts including Jordan Rochester
The firm suggests adding to short Swiss franc positions even as EUR/CHF strengthens to the highest levels since the SNB removed the floor in the pair.
Nomura says that they are exiting their long GBP/CAD recommendation, and instead switches to a long GBP/CHF position at 1.3539.
"The SNB is likely to remain on the sidelines for quite some time awaiting ECB normalisation and continued CHF weakness before policy normalisation", the note argues.
Adding that "the risk to any CHF short-related trade is if market risk aversion were to prevail".
Mike also shared his thoughts earlier here, and we both have been banging on dip-buying on swissie pairs for many a time now. EUR/CHF remains the only pair I am comfortable with having a structural view on, holding on to longs from 1.1500 levels - and it was one of my favourite trades of last year because of how simple the trade idea looks, as well as how the risk to the trade can be properly defined and limited.
