23 days ago • Posted by Paul de La Baume
Does #Swiss francs reveals #dollar weakness is overdone? #Fx #trading
The Swiss franc is proving to be very strong in light of the rush to safety because of the macro uncertainty and overall bearish sentiment as many expect a recession to unfold in the US later this year. But what is remarkable is that the dollar has weakened meaningfully versus the Swiss franc, all while raising interest rates aggressively. And looking at the 2 year US Treasury, it suggests that investor sentiment has pulled down the dollar, perhaps asking now for some level of mean reversal, for the USDCHF to revert higher.
