Funds Trade EUR/CHF Floor Break

04 Apr 2012

Hedge funds are purchasing two-to-three-month downside put spreads on the euro/Swiss franc with strikes at CHF1.17/1.18, despite market sentiment that the Swiss National Bank will not allow the enforced CHF1.20 floor to break.

Hedge funds are purchasing two-to-three-month downside put spreads on the euro/Swiss franc with strikes at CHF1.17/1.18, despite market sentiment that the Swiss National Bank will not allow the enforced CHF1.20 floor to break.

Funds have taken up the positions on the back of a gradual decrease in spot on ...

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