Established in 1974
185,800 clients worldwide
Over 15,000 markets

Day two: selling CHF/JPY

I looked at selling CHF/JPY at 115.10 and with the mid-point of the pair hitting 115.14 overnight, the position has been filled.

From the JPY standpoint, we have seen better flows to be short JPY, but predominantly against the USD and GBP. CHF is likely to stay weak as traders speculate that the Swiss National Bank (SNB) will follow any policy initiatives. As a result we should see a strong correlation between EUR and CHF.

The fact that Swiss CPI was at 0.0% recently suggests the SNB could also ease policy as the risk of deflation is high. This is another reason why I have chosen to use the CHF as my preferred currency to short.

CHF/JPY
IG Charts

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.