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2026-05-27 18:02:02
[Swiss Franc Shorts Face Challenges, JPMorgan Acknowledges Pressure on Positions, Morgan Stanley Bullish and Shorts EUR/CHF] ⑴ The Swiss franc weakened against the US dollar and cross-currency pairs on Tuesday, but the decline gradually stalled on Wednesday, with a mild rebound underway. In recent trading days, physical funds and systematic accounts have consistently appeared on the buying side of the Swiss franc, providing support for the exchange rate. ⑵ JPMorgan Chase is one of several institutions holding short positions in the Swiss franc. While the institution prefers to express this trading strategy through AUD/CHF, it also acknowledges that its current positions are under pressure. Month-end rebalancing flows pose another short-term obstacle for Swiss franc shorts, as the end of the month in recent months has often tended to support a stronger Swiss franc. ⑶ Morgan Stanley, on the other hand, is bullish on the Swiss franc and holds short positions in EUR/CHF, citing the Swiss National Bank's failure to clearly signal its defense of the 0.90 to 0.91 range. Morgan Stanley also pointed out that the decline in global yields following consecutive lower-than-expected April CPI data could provide further support for the Swiss franc. However, the options market has already reflected the current stalemate, with the spot exchange rate fluctuating within a range and actual volatility remaining low.
