JP Morgan are staying short EUR/CHF, citing:
- While economic growth is getting a lift from the lower Q4 2023 developed market yields, the bounce back is a threat to the recovery in Europe
- German manufacturing looks to be weakening giving materially undershooting PMI
Risks noted to the position include:
- a shift in the Swiss National Bank's FX intervention stance
- undershoot on Swiss inflation
- better European PMIs means the potential for safe haven outflows from CHF as regional growth improves
