CHF

Traders remained net-long US dollar index futures last week, although asset managers have the more convincing bullish view for the dollar.

Comments from SNB’s president suggest the central bank might be closer to hiking rates sooner than some expect.

The long / short ratio of bulls to bears on the Swiss franc hit a record low last week, which suggests we may be approaching a sentiment extreme for bearish positioning.

The FTSE 100 broke below 7000 on Friday during its most bearish session in two months, bringing 6900 within easy reach for its next target.

The Swissy (USD/CHF) enjoyed its most bullish day in 3-month yesterday, and just the June high stands in its way of an extended run (if consumer sentiment allows).

The US dollar was lower following the FOMC meeting, which has seen gold rise to a 7-day high during Asian trade.

Whilst risk assets remained under pressure, there are signs that the risk-off tone has softened as bearish volatility remains on the low side.

The dollar’s rally leading into June’s Nonfarm payroll report saw large speculators push net-long exposure to on DXY to its highest level since June 2020.

If traders would like to trade DXY, USD/CHF may be a good substitute