Flash: Keep trading the EUR/CHF range - JPMorgan

FXstreet.com (Bali) - JP Morgan recommends trading the range in EUR/CHF, expecting it to remain range-bound as the SNB maintains the 1.20 floor but the balance of payments caps euro’s upside.

Key Quotes

"As long as ECB policy remains ultra loose, trade the range on spot, fade intermittent richness in the EUR/CHF skew and fade spikes in the USD/CHF-EUR/USD vol spread."

"As in Japan, a notable flow worth monitoring is FDI outflows, which have ratcheted up in 2013 to about half the record size (S₣46bn on a net basis versus the record S₣80bn in 2006)."