The Swiss National Bank surprised everyone with a 50 basis point hike this week while the Bank of Japan stuck to its policy of yield curve control. The relative shift is why MUFG Research made the CHF/JPY pair its trade of the week.

They recommend buying the pair at 139 with a target of 144 and a stop at 136.50.

“We are recommending a long CHF/JPY trade to reflect the recent widening divergence in monetary policy stances between the BOJ and SNB. WHile the BOJ continued to keep loose policy settings in place, the SNB has just embarked on their own rate hike cycle,” MUFG noted.

For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.

Source link

Articles You May Like

Nasdaq Technical Analysis – The rotation continues to hit the tech heavy index
FX option expiries for 18 July 10am New York cut
De-risking is the theme of the moment
Finding Your Ideal Broker | Forexlive
FX option expiries for 15 July 10am New York cut

Leave a Reply

Your email address will not be published. Required fields are marked *