Citi flags asymmetric risk/reward in CHF this month
Citi flags a scope for Switzerland to be named a currency manipulator by the US by US Treasury in October.
" CitiFX Strategy's latest: Switzerland can be named a currency manipulator in October. Switzerland has met the objective criteria to be labeled a currency manipulator by US Treasury. The timing of the US Treasury Foreign Exchange Report has been disrupted over the past 18 months; however, we expect US Treasury will attempt to get back on schedule by releasing the report this month.
"This provides asymmetric risk/reward for long CHF positions in the coming weeks as countries named currency manipulators tend to see their currencies strengthen," Citi adds.