Bank of America Merrill Lynch FX Strategy Research makes the case for buying USD/CHF as the best directional trade for 2018.
"Our G10 FX directional trade of the year is higher USD/CHF. The balance of payments and continued policy divergence between the Fed and SNB will likely drive the trade.
Despite its recent language tweak, we believe that the SNB is nowhere close to declaring victory and would like to see EUR/CHF trading above the prior 1.20 floor," BofAML argues.
In line with this view, BofAML recommends buying a 6-month (17-May-18) USD/CHF 1.05 call, using spot reference 0.9925.
Comments
Post a Comment