Morgan Stanley recommends shorting EUR/CHF as euro risks rise

智通财经2026/10/07 16:41

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Morgan Stanley strategists have renewed their recommendation to short EUR/CHF, betting that rising risk aversion and increasing risk premiums on eurozone assets will drag down the euro. In a report published Wednesday, the strategists wrote that shorting EUR/CHF could hedge against "further increases in fiscal and political risk premiums," and that bond market volatility may prompt markets to reprice European Central Bank policy expectations in a more dovish direction. They noted that concerns from the Swiss National Bank over Swiss franc appreciation pose a risk to the EUR/CHF short, potentially driving the pair higher. The strategists target EUR/CHF at 0.90 with a stop-loss at 0.96. They also continue to recommend shorting EUR/AUD and expect the euro to weaken against most currencies.

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