USD/CHF is a buy on dips to 0.9360 – TDS

According to analysts from TD Securities point out that the Swiss franc is facing challenges as global risks subside. They point out, CHF is looking particularly vulnerable within the G10 complex.

Key Quotes: 

“The CHF is the second-best performing G10 currency against the USD this year to date. Only the SEK has eclipsed the franc as markets rediscovered its traditional safe-haven appeal.”

“In addition to the Pandemic Panic, CHF benefitted greatly from US political discord and ongoing Brexit tensions. Global reflation efforts amplified CHF strength as it tracked other trends.”

“Intervention proxy data shows the pace of activity has slowed dramatically in recent weeks – even over the US election period. We believe this reflects an early shift in the global risk backdrop.”

“High-frequency valuation concerns have diminished, somewhat, in recent weeks but we struggle to call the franc “cheap”.