Frank Swiss has held his largest one -day rally since 2015, becoming the preferred recipient of secure flows leaving the dollar. USD/CHF initially reflects above 0.820 this morning after accelerating the inheritance from day to day on which the level of 0.814 was shortly affected, FX analyst, Francesco Pesole, notes.

The risk of USD/CHF moves towards 0.800

“It seems that the preference of the market for Swiss franc is a reflection of the risk contained that the Swiss National Bank (SNB) intervenes to prevent excessive KF strength. The reasoning is that the permanent, unilateral FX intervention would raise alarm bells in the treasury of the US treasury, which could officially call the Swiss manipulator FX more severe. “

“On Monday, SNB publishes data on vision deposits in March. The increase in vision deposits is essentially a signal that the bank intervenes to weaken French. It may not be too indicating what SNB does or plans to do in April, because CHF profits compared to USD were much more concluded, and EUR/CHF actually approaches the German fiscal stimulus.”

“But the market, which is clearly considered excessive defensive rewards alternatives to the dollar, can read stable vision deposits as another reason to remain stubborn at CHF. SNB Does he intervene to stop the news related to the rally or trade, reverses the dollar tide, the risk remains minus USD/CHFwhich can test 0.800 before sustainable recovery. “