Long Gbp/chf Call Spread

Long Gbp/chf Call Spread




Quotes from RBC Capital Markets:
-We think the primary transmission mechanism for GBP weakness with QE1 was a pricing out of the conventional tightening that was in the forward curve. QE2 did not have the same effect and in fact GBP has outperformed since (up against its European counterparts - EUR, SEK, NOK, CHF since the Oct announcement).
-Meanwhile the UK's budget data have surprised to the upside. On the other side of the trade, we think upcoming events will drive home the point that the SNB cannot afford to step back from the floor. We bought a 3m GBP/CHF call spread with strikes at 1.44/1.48 for 0.66% (spot ref 1.4230, vol ref 8.5 paid, 8.75 received).

More FOREX-news on pages InstaForex.Com