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Ukraine Unrest Spurs Move To CHF

Published 03/03/2014, 07:30 AM
Updated 05/14/2017, 06:45 AM

In the weeks up to February 25, speculators unwound CHF shorts and are again square the Swiss currency, underlining the attractiveness of the franc as geopolitical tensions are on the rise. We would expect the recent escalation in Ukraine unrest to spur a classical risk-off move benefiting CHF but also JPY and USD. The latter two did not gain much positioning-wise ahead of the Russian move towards Ukraine over the weekend as Bank of Japan delivered a surprise easing move last week and US data continued to come in on the weak side. We would however expect any further increase in tensions with Russia to trump economic data in the current situation.

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