Re: Euro/Swiss Franc
I don't disagree but the mainstay of the Euro is the German portion.If the Euro is weak in all likelihood the Swiss will be weak as well.In addition because the Swiss depend on tourism
they have taken action many times in the past to
weaken their currency.I did the following trade I don't know how it will hold up in the long run.Take the price of the near term
Swiss futures contract.Today March Swiss(on CME) settled
at 6003.Multiply that number by 3. total of
18009.Take the march Eurocurrency 8792 and multiply by 2=17584. 18009-17584=425. I believe whenever this number is 400 or greater you should
buy 2 Euro and sell 3 Swiss.I believe fair value is about minus 200 or 625 points from settlement.
I am just experimenting with this at the moment
and am not recommending this as a top tier trade.
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