BNP Paribas G10 FX trade idea of the week: long USDCHF: FXWW

From the FXWW Chatroom: – We favour positioning for USDCHF appreciation over the next 3m.
– USD short positioning is still very extended according to BNP Paribas FX Positioning Analysis.
– In Washington, momentum is building towards progress on tax reform.
– As per the Washington Post, Republicans on the House Ways and Means Committee meet early in the week in preparation for an all-day briefing for the full House GOP caucus and release of a White House/Congressional leadership unified “tax framework” on Wednesday
-Progress on tax reform would see US yields re-price higher and USD shorts get squeezed.
BNP: We recommend selling 3m EUR vs. INR at current levels of 78.54 (3m USDINR ref 65.45 and 3m EUR ref. 1.20 respectively), with a target of 76.0 and stoploss of 79.60 (applied to decayed forward).
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