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3 Apr 2013
Forex Flash: Short the Yen vs the Swiss Franc - JP Morgan
FXstreet.com (Barcelona) - A long term trade idea, according to John Normand, FX strategist at J.P. Morgan Securities, is to short the JPY/CHF pair on the basis of hugely dissimilar fundamentals.
John says: "Switzerland runs one of the largest current account surpluses in the world (12% of GDP and rising), while Japan’s surplus has evaporated. The BoJ is clearly on a multi-year easing path while the SNB is on hold. On a view that balance of payments trends and central bank policy will define winners and losers in FX over the long term, keep this trade."
John says: "Switzerland runs one of the largest current account surpluses in the world (12% of GDP and rising), while Japan’s surplus has evaporated. The BoJ is clearly on a multi-year easing path while the SNB is on hold. On a view that balance of payments trends and central bank policy will define winners and losers in FX over the long term, keep this trade."