* New Zealand c. financial institution holds charges regular, wrongfoots traders* Hedge funds had constructed up large quick bets in opposition to
* New Zealand c. financial institution holds charges regular, wrongfoots traders
* Hedge funds had constructed up large quick bets in opposition to the Kiwi
* Graphic: World FX charges in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Nov 13 (Reuters) – The Swiss franc rallied to a one-month excessive in opposition to the euro on Wednesday as hedge funds unwound a few of their destructive bets in opposition to the foreign money and as urge for food for dangerous property faltered because of the intensifying unrest in Hong Kong.
A speech by U.S. President Donald Trump the place he threatened to boost tariffs on China and criticised European Union commerce insurance policies earlier than a Nov. 14 deadline to resolve whether or not to boost tariffs on European and Japanese carmakers additionally boosted demand for the negative-yielding Swiss foreign money.
Hedge fund and banks had ramped up their bearish bets in opposition to the Swiss franc over the past two weeks on expectations a commerce pact between Washington and Beijing would gasoline demand for dangerous property and enhance carry-trades the place traders borrow in low-cost currencies such because the franc and yen and put money into riskier ones just like the greenback and the pound.
“It feels that the market has been getting itself quick Swiss franc the previous 2 weeks on again of the rally in threat and there needs to be extra draw back within the euro/franc and the greenback/franc,” stated a gross sales dealer at a European financial institution in London.
Towards the euro, the…