EURO-SWISS: Since mid July, the euro-Swiss cross, currently around Chf1.2341 has
seen support above Chf1.23 and shown reluctance to press much over Chf1.2400.
UBS strategists Gareth Berry and Geoffrey Yu note that UBS has been sellers of
Swissy "for 6 weeks in a row and now demand for the cross is spreading." More
recently, hedge funds, asset managers, corporates and private wealth accounts
"were all better buyers of EURCHF," they say. An earlier UBS report from last
week said "SNB data on custody holdings suggest Swiss fund managers have started
to buy portfolio assets abroad again having eschewed external investments since
the eurozone debt crisis began in 2010." Mansoor Mohi-uddin of UBS warned that
"investors should thus be prepared for the risk of spikes in EURCHF breaching
this year's highs of 1.26-1.27."
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