What is MM’s view towards the Swiss Franc?
What is your view - US dollar vs Swiss Franc? I note you have a neutral view on the US - historically it tends to peak a few months before the end of a US interest rate hiking cycle?
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Answer
Hi Arthur,
We are of the view that the $US can often peak before the end of a US interest rate hiking cycle, similar to how copper stocks have a habit of forming a bottom before the underlying industrial metal.
In terms of the USDCHF we are neutral to positive just here but we would be fading any move towards 1.02 i.e. another failed “pop” that has already occurred on a number of occasions in 2022. Overall a bit boring for now but with the USDCHF trading around the current 0.98 area for the last 12-months its not the time to force an opinion onto the market.
