JPM G10 FX Spot Desk: USDCHF

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Month-end not providing us with too many fireworks; however, it generally saw CHF trade with an offered tone. This took CHFJPY briefly below 169 and towards 168.80 support, although we find ourselves higher today. I continue to hold CHFJPY shorts; however, I would be frustrated to see the pair back on a 170 handle and towards the 100-day at 170.84. The view here remains bearish on CHF due to a dovish SNB, low yields, and both RM and systematics sitting with decent-sized longs in CHF. EURCHF and USDCHF, however, remain trading with the broader dollar/market sentiment, so for now, I have little appetite to be involved in either, especially as tomorrow should be whippy. Flow-wise, we saw decent appetite to buy CHF from HFs yesterday, and interestingly, RM and systematics selling CHF.

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