When Havens Compete
Why CHF is suddenly back in vogue.
When we published our tactically bullish USD view at the start of the month (Bears in a Dollar Shop), we didn’t anticipate President Trump turning to tariffs as a means of negotiating possession of Greenland.
Given the situation we find ourselves in, the greenback has turned lower, with the pair that has really caught our eye being USD/CHF, which broke below 0.7900 in London trading on Tuesday, shedding over 1% at one point.
The move takes us into what we see as the ‘danger zone’ for the pair, with the 0.7800-0.7900 region proving critical for several reasons.