THE5ERS
Sep 29, 6:28 AM
USD/CHF is testing 0.8300, the highest since late May, and the franc is trading like a funding currency. Markets price a 70% chance of a Fed hike on Oct 28.
The SNB held at 0% on Sept 24 while the Fed, ECB, and BOJ tightened. U.S. 10-year yields at 5.20% against Swiss bonds at 0.65% make the carry obvious. Warsh already delivered the first hike in over three years. The SNB is signaling intervention against franc strength.
Pharma is about half of Swiss exports to the U.S., with
$NVS and Roche pledging
$73B of U.S. investment. Hormuz talks are the risk, not the bid.
#USDCHF #Forex #Fed #SafeHaven
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