Swiss Franc Expected to Strengthen
USDCHF – Trading crowds remain fairly net-long the US Dollar against the Swiss Franc, but the dramatic decline in long interest leaves broader risks to the upside. The ratio of long to short positions in the USDCHF stands at 1.84 as nearly 65% of traders are long. Yesterday, the ratio was at 1.51 as 60% of open positions were long. In detail, long positions are 16.9% higher than yesterday and 3.7% stronger since last week. Short positions are 4.2% lower than yesterday and 19.1% stronger since last week.
The overnight build in long positions suggests short-term USDCHF risks may be to the downside, but it is likewise clear that the broader trend has turned in favor of medium to long-term gains.
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