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We have gone long EUR/CHF at 1.0468 ahead of the ECB meeting tomorrow. We’ve seen EUR post gains across the board this afternoon which feels like a positional move ahead of tomorrow. Therefore we are jumping on the bandwagon, having already cited our reasons for being bullish EUR in our latest ECB preview piece.

As our view is for a bullish USD, we don’t like being long EUR/USD, and so rather favour shorting CHF instead. The Swiss still have negative interest rates, and so chatter from the ECB tomorrow about raising rates should help to widen the differential in rates, causing EUR to gain, CHF to lose.

We are flexible on taking profit, stopping losses depending on how the meeting runs tomorrow.

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