The euro finished last week strong as European bond rates blew out. How that trade goes next week will be a major catalyst for the euro next week.
MUFG suggests buying EUR/CHF at spot and targeting a rise to 1.08 with a stop at 1.03.
"We are recommending a long EUR/CHF trade idea. The trade idea is to take advantage of the hawkish reprising of ECB rate hike expectations. The ECB's hawkish policy shift is an important bullish pivot point for the euro. We do not expect the SNB to quickly follow the ECB by speeding up their own tightening plans," analysts wrote.
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