Forex Flash: CHF to face pressure as safe haven appeal wanes – UBS

FXstreet.com (Barcelona) - The Swiss franc has been a major beneficiary of safe-haven flows since 2007. As UBS data below shows, investors across all major segments remain short EUR/CHF and corporates and private clients remain short USD/CHF. However, the market's big long in the franc is at risk. Yesterday the USD/CHF made new highs for 2013 above 0.9660 and the EUR/CHF is nearing this year's high around 1.2570.

The franc is likely to remain under pressure over the next few months particularly against the dollar. According to the UBS Research Team, “demand for safe haven assets is waning as central banks keep loosening monetary policy to revive economic growth. Investors are buying equities - the S&P 500 made a new all time high overnight above 1650 and the Nikkei reached 15,000 this morning for the first time since 2008 - while shunning bonds and other traditional safe havens.