- Analytics
- News and Tools
- Market News
- CHF: Downside opening up in coming 2 to 3 weeks - BAML
CHF: Downside opening up in coming 2 to 3 weeks - BAML
The Research Team at Bank of America Merrill Lynch (BAML) offers its near-term view on the Swiss franc, in light of the recent US-China de-escalation.
"In negotiation theory, the zone of possible agreement (ZOPA) refers to a bargaining range outside of which no amount of negotiation will produce an agreement. For us, the key takeaway from the Trump-Xi meeting at the G20 is that Trump's decision to reverse the Huawei ban has brought the two sides back in the ZOPA. Skilled negotiators know that concessions at the right moment can alter perceptions and invoke desired responses. It looks to us that what may be a tactical concession could be calculated to foster the conditions for reaching a "historic" deal. Whether we will be proved right or not, the market will give the two sides the benefit of doubt for 2-3 week we think. During this waiting period, we believe the combination of de-escalation of a trade war and a healthy bounce in the June nonfarm payrolls will place some pressure on crowded positions in safe-haven assets. US rates and USD/CHF could see some retracement."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
